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Analog Computers Needs to Borrow $475,000 from the Midland Bank

question 32

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Analog Computers needs to borrow $475,000 from the Midland Bank. The bank requires a 15% compensating balance. How much money will Analog need to borrow in order to end up with $475,000 spendable cash?

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Definitions:

Freight Charge

The cost associated with the transportation of goods from one place to another.

Store Equipment

Fixed assets like shelves, cash registers, and display units used in the operations of a retail store.

Display Rack

A fixture in stores and exhibitions used to showcase products or materials to customers and visitors.

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for sale to customers in the ordinary course of business.

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