Table 15.1
Irish Air Services has determined several factors relative to its asset and financing mix.
(a) The firm earns 10 percent annually on its current assets.
(b) The firm earns 20 percent annually on its fixed assets.
(c) The firm pays 13 percent annually on current liabilities.
(d) The firm pays 17 percent annually on long-term funds.
(e) The firm's monthly current, fixed and total asset requirements for the previous year are summarized in the table below:
-The firm's monthly average permanent funds requirement is ________. (See Table 15.1)
A) $100,000
B) $57,500
C) $140,000
D) $157,500

Question

Table 15.1
Irish Air Services has determined several factors relative to its asset and financing mix.
(a) The firm earns 10 percent annually on its current assets.
(b) The firm earns 20 percent annually on its fixed assets.
(c) The firm pays 13 percent annually on current liabilities.
(d) The firm pays 17 percent annually on long-term funds.
(e) The firm's monthly current, fixed and total asset requirements for the previous year are summarized in the table below: 
-The firm's monthly average permanent funds requirement is ________. (See Table 15.1)
A) $100,000 
B) $57,500 
C) $140,000 
D) $157,500

Quizplus · Accepted Answer

The monthly average permanent funds requirement is calculated based on the firm's consistent financial needs, which in this case is $140,000 as per the given data in Table 15.1.

Table 15.1 Irish Air Services Has Determined Several Factors Relative to Its