ACCT 212 Chapter Notes -Revolving Credit, Accounts Payable, Capital Requirement
Document Summary
The xyz company revenue is increased by 15% every year; this is because of increasing demand of the product in the market and the increasing needs of the customers. As it has been evident from the balance sheet of the company that the company is able to meet the increasing demand from its existing resources and production capacity, and no further investment in fixed assets is required. Resultant the company does not need any further financing for the fixed assets. The increase in revenue has resultantly increased the account receivable of the company. The liability side of the company has also increased simultaneously. The company working capital need for the year 2015 is around , which is result of increase in account receivables, prepaid, inventories and accounts payable. The current portion of long term debt has t paid every year; the same will be paid till year 3, in year 4 the balancing has to be paid.
