Ch. 6 Assignment.doc

Ch. 6 Assignment.doc - Ch 6 Assignment Wendy Parwana p 182...

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Ch. 6 Assignment Wendy Parwana p. 182 1) It would effect it instantly, because a sales expansion would need a buildup in assets to help in the growth and it can't be a temporary growth it would need to be a permanent one. 4) A cash budget helps to minimize current assets by giving the company a forecast of inflows and outflows of cash and helps develop a schedule as to when inventory is produced for sales and when accounts receivables are collected. 6) By a company using long-term capital to cover part of short-term needs, it allows the company to virtually having adequate capital at all times and in that it is more expensive to pay back a ten year loan
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