Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. summary balance sheet data for mr. green tea is sh

Summary balance sheet data for Mr. Green Tea is shown below (in thousands of dollars)....

50.1K

Verified Solution

Question

Finance

image
image
Summary balance sheet data for Mr. Green Tea is shown below (in thousands of dollars). The company is in a highly seasonal business, and the data show its assets and liabilities at peak and off-peak seasons: Peak Off-Peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total assets $690 $620 Payables and accruals $ 30 $ 10 Short-term bank debt 50 0 Long-term debt 300 300 Common equity 310 310 Total claims $690 $620 From this data we may conclude that Mr. Green Tea follows a relatively conservative approach to current asset financing that is some of its short-term needs are met by permanent capital Without income statement data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy Mr Green Tea's current asset financing policy is relatively aggressive that the company finances some of its permanent assets with short-term discretionary debt. Without cash flow data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy Mr. Green Tea's current asset financing policy calls for exactly matching asset and liability maturities

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

An election from various excited states of hydrogen atom emits radiation to come to the...

Advance Math
1.2K views

7. (Please, if you are not willing to answer the question completely, please leave the question to...

Medical Sciences
1.2K views

Describe at least 3 basic defenses operating to prevent lower respiratory system infections

Chemistry
1.2K views

1) Rank the following from the strongest acid to the weakest acid. Explain with reasons please. A)...

Basic Math
1.2K views

Which expression is equivalent to the following complex fraction?(1+1/y)/(1-1/y)(y+1)(y-1)/y^2(y+1)/(y-1)(y-1)/(y+1)y^2 /(y+1)(y-1)

Statistics
1.2K views

Create Scatterplots for each of the tables of data below using your graphing calculator Determine...

Statistics
1.2K views

In a group of 136 students 116 are freshmen If one student is selected at...

Calculus
1.2K views

Show that there is a number x such that sin x x 1 by filling...

Algebra
1.2K views

7 97 Find the inverse functions for the functions given below a f x 4x...

Algebra
1.2K views

You are paying off a student loan in monthly installments After your 5th payment your...

Accounting
1.2K views

Montana Mining Company pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs...

Accounting
1.2K views

VAP Company's balance sheet shows: Common stock, $20 par $4,000,000 Paid-in capital in excess of...