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Refer to the Bulldog battery company's cash budget in Table 18-7. Explain why the company would probably not issue $1 million worth of new common stock in January to avoid all short-term borrowing during the year.
Common stock financing is long-term financing thus it would probably not be used to meet this short-term financing need.
Explain the significance of the term additional funds needed. While the pro forma balance sheet is completed, total assets and total liabilities and equity will hardly match.
Managerial Finance Functions Need skilful planning, control and execution of the financial activities. There are four significant managerial finance functions. These are as sho
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