(Identifying spontaneous, temporary, and permanent sources of financing)
Classify each of the following sources of new financing as spontaneous, temporary, or permanent (explain):
- 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.
- A retail firm orders new items of inventory that are charged to the firm's trade credit.
- A Crown firm issues common stock to the public and uses the proceeds to upgrade its tractor fleet.
please provide explanation.