Determine the company financial liabilities

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-Suppose that from January 6, 2020 to December 6, 2020, Delaney's Fine Shoes Company [a non-financial business firm] experienced the following changes in its assets and liabilities of interest. The company invested in $500,000 worth of renovations and purchases of new equipment at both its Montreal and Toronto facilities, bought $50,000 worth of Canada savings bonds and $100,000 worth of another company's stocks, and had to pay off a short-term debt of $25,000 that had become due. Even though it had achieved a saving position of $400,000, and decreased its bank deposits by $50,000, the company contracted a long term debt of a certain amount from its bank.

(i) Using the flow-of-funds equation, determine what the company's financial liabilities must have been during the stated period in 2020.

(ii) Using the TWO METHODS discussed in class, set up the company's flow-of-funds statements for the stated period in the year, 2020?

(iii) Determine if the company was a net debtor or net creditor during the stated period and calculate by how much such an amount might have been.

Reference no: EM133072222

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