Chapter 16 - Solutions

FIN 534 - Homework Chapter 16

Directions: Answer the following five questions on a separate document. Explain how you reached the

answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using

the assignment link in the course shell. Each question is worth five points apiece for a total of 25 points

for this homework assignment.

1. Summary balance sheet data for Greener Gardens Co. is shown below (in thousands of dollars).

The company is in a highly seasonal business, and the data show its assets a nd liabilities at peak

and off-peak seasons:

Peak

1. b.

Greener Gardens follows a relatively conservative approach to current asset financing; that is; some of its short term needs are met by permanent capital.

Reasoning:

In...