Ch 1 BDC - means that there would be a great chance they...

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Business Decision and Communication Problem Helen Synodi, president New London Bank Dear Mrs. Synodi, After reviewing the balance sheets for the two companies, it is my personal belief that a loan to Wafeek’s Home Designs would be a much safer investment for us. According to the balance sheet supplied by Oscar’s Home Designs, it appears they have a lot of claims against their company by non-owners and doesn’t have a large cash supply on hand. This
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Unformatted text preview: means that there would be a great chance they couldn’t return on their loan. Wafeek’s, on the other hand, has a large cash reserve already and has near 1/10 th the amount of liabilities as Oscar’s. It is my personal opinion that Wafeek’s would have a very high probability of repaying their loan to us. It is not in our best interests to take a risk on Oscar’s Home Designs....
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This note was uploaded on 04/09/2008 for the course ACCT 042 taught by Professor Turlow during the Fall '07 term at Drake University .

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