Commercial Paper. Boston Corporation’s balance sheet follows:
ASSETS
Current assets $ 700,000
Fixed assets 1,600,0004
Total assets $2,300,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Bank loans payable $ 500,000
Commercial paper 100,000
Total current liabilities $ 600,000
Long-term liabilities 300,000
Total liabilities $ 900,000
Stockholders’ equity 1,400,000
Total liabilities and
stockholders’ equity $2,300,000
The company has an excellent credit rating and can issue additional commercial paper if it wishes. Should Boston Corporation issue additional commercial paper?