In the spotlight about FedEx Corporation, you get a feel for the amount of investment in assets and the resulting liabilities that are required to operate a competitive corporation. Even small businesses require plant, property and equipment to compete and normally rely on some form of debt to finance itself. Let's start up a company that sells auto parts like Napa or Auto Zone. What assets would we require? How might we finance them?
An auto store would require a place to set up their business, unless they are renting their business. Assuming that they will buy the land, the property, including land and building, would be the main asset purchase. The next biggest asset that would be required for a retail location is inventory. Other assets include cash registers, safes for excess money collected from sales, the manager's ...
The solution provides a detailed explanation determining the assets that would be required to start an auto parts store and how the owner would finance the assets.