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tire city
Essay specific features
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Written by:
Rosalie D
Date added:
March 22, 2015
Level:
University
Grade:
A
No of pages / words:
4 / 984
Was viewed:
5950 times
Rating of current essay:
Essay content:
The amount that tire city is expected to spend is $2,400,000 which $2,000,000 of that is accounted for in 1996 and is put into Long term debt and Gross Plant and Equipment. While the remaining $400,000 will be accounted for in 1997. After adding this data along with the increases to sales data we can see that in 1996 to firm will have excess cash in 1996 of 1,505,000 and excess cash of $1,214,000 in 1997...
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After adding this data along with the increases to sales data we can see that in 1996 to firm will have excess cash in 1996 of 1,505,000 and excess cash of $1,214,000 in 1997.
So with looking at this information Tire City should take out the loan because they have the funds to pay it back and they have the line of credit with the bank that will make it cheaper for them...
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