Scott Equipment Organization Paper

1370 Words Dec 10th, 2011 6 Pages
Scott Equipment Organization Paper
Tessa Carey, Monique Cratty, Estevania Delgado, and Nora Villalobos
FIN/419
December 17, 2011
Professor Jennifer Stapp
Scott Equipment Organization Paper Many small companies use debt financing to achieve financial goals. Some choose to use debt consolidation financing. By having a wide range of financing options available, a company is able to get their business up and running faster. This paper will examine three options of financing for Scott Equipment. The aggressive, moderate, and conservative financing options will be calculated and compared in order to determine the best option for Scott Equipment.
Summary of Short-Term and Long-Term Financing Policy Options Short-term financing is
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This tends to be a careful balance of managing risk while trying to maximize the working capital that is available for immediate use. The following table illustrates the projected calculations should Scott Equipment should go this route.

| | |
|Current Assets |$30 Million |
|Fixed Assets | 35 Million |
|Total Assets |$65 Million |
|Current Liabilities |$18 Million (5%) |
|Long-Term Debt | 7 Million (8%) |
|Total Liabilities |$25 Million |
|Stockholder’s Equity |40 Million |
|Total Liabilities & Stockholder’s Equity |$65
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