Use the Information to Answer the Following Question(s)

question 42

Multiple Choice

Use the information to answer the following question(s) .
SureDrip Irrigation Systems Inc. is supplied with plastic chips for their plastic injection molding manufacturing process. Their supplier, Sun Chemical, Inc. offers financing terms of a 2% discount if the accounts payable are paid in 10 days or less with the full balance due in 45 days. Short-term financing available to SureDrip is available at an annual rate of 9.6%. SureDrip has just purchased $400,000 of plastic chips from Sun Chemical.
-Refer to Table 18.1.NWC currently makes up what percentage of total firm value for Polaris?

• A)6.6%
• B)5.1%
• C)11.8%
• D)9.2%

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Definitions:

Restricted

Refers to assets or resources that are subject to limitations or conditions on their use, often imposed by contractual agreements or regulations.

Unrestricted

Refers to funds or resources that are not subject to externally imposed restrictions and can be used by the organization for any purpose.

Donated

Items or assets that are given without any expectation of payment or benefit in return.

Endowment Fund

Financial assets donated to institutions or organizations with the stipulation that the funds are to be invested and the principal remains intact.