I-14.01 Problem

I-14.01 Problem - I-14.01 Summary information for Branford...

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Summary information for Branford Corporation's balance sheet follows: BRANFORD CORPORATION Balance Sheet August 15, 20X4 Assets Cash 125,000 $ Accounts receivable 250,000 Inventory 750,000 860,000 Total assets 1,985,000 $ Liabilities Accounts payable 125,000 $ Accrued liabilities 260,000 Notes payable 290,000 Total liabilities 675,000 $ Stockholders' equity Common stock, $5 par 700,000 $ Paid-in capital in excess of par 300,000 Retained earnings 310,000 Total stockholders' equity 1,310,000 Total Liabilities and equity 1,985,000 $ Branford's business is growing rapidly, and the company needs to expand its manufacturing facilities. This expansion will require the company to obtain an additional $1,000,000 in cash. The company is exploring five alternatives to obtain the necessary capital: DEBT OPTION: Branford is able to borrow, on a 5-year note, the full amount needed. The interest rate on this note would be 7%, and the note would require monthly payments. 1
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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I-14.01 Problem - I-14.01 Summary information for Branford...

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