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​(Identifying spontaneous,​ temporary, and permanent sources of​ financing) Classify each of the following sources of new financing as​ spontaneous, temporary, or​ permanent: a. A manufacturing firm enters into a loan agreement with its bank that calls for annual principal and interest payments spread over the next four years. b. A retail firm orders new items of inventory that are charged to the​ firm's trade credit. c. A trucking firm issues common stock to the public and uses the proceeds to upgrade its tractor fleet.

Respuesta :

Answer:

a) Permanent source of finance

b) Spontaneous source of finance

c) Permanent source of finance

Explanation:

With transaction b), The credit is for day to day operations making it a spontaneous funding but credit usually do not take more than 90 days to pay therefore temporal can also fit in nonetheless Spontaneous is more appropriate as the credit is a spontaneous source of funding.

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