(QUESTION 3) Below are the latest financial statements of ABC Company: ABC Company Income Statement ($ millions) Sales r

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Question 3 Below Are The Latest Financial Statements Of Abc Company Abc Company Income Statement Millions Sales R 1 (152.62 KiB) Viewed 42 times

(QUESTION 3) Below are the latest financial statements of ABC Company: ABC Company Income Statement ($ millions) Sales revenue $1,974 Cost of sales 1,117 Gross profit $ 857 Operating expenses 737 Operating profit $ 120 Interest expenses 39 Income tax expense 20 Net income $ 61 ABC Company Balance Sheet ($ millions) Current assets Cash $ 18 Accounts receivable 154 Inventory 267 Total current assets $ 439 Long-term assets Property, plant & equipment, net $ 444 Other assets 337 Total long-term assets 781 Total assets $1,220 Current liabilities Trade creditors $ 143 Short-term bank loans 100 Total current liabilities $ 243 Long-term debt 550 Total liabilities $ 793 Common shares (31 million) $ 31 Retained earnings 396 Total equity 427 Total liabilities & equity $1,220 Required a) The shareholders want to purchase another business for $25 million. The company does not want to use the cash they have in the business cash account. Provide a strategy on how the company can source the funds to purchase the $25 million business. ||