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Panton, Inc. acquired 18,000 shares of Glotfelty Corp. several years ago. At the present time, Glotfelty is reporting the following stockholders' equity:
Glotfelty issues 5,000 shares of previously unissued stock to the public for $27 per share. None of this stock is purchased by Panton.
Describe how this transaction would affect Panton's books.
Safety Stock
Extra inventory kept on hand to prevent stockouts caused by variations in supply and demand.
Lead Time
The time interval between the initiation and completion of a process, such as the period from placing an order to its delivery.
Safety Stock
Inventory held in reserve to guard against stockouts caused by variability in demand or supply chain delays.
Lead Time
The time interval from the initiation of a process (such as placing an order) to its completion (such as the delivery of goods or services).
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