Who should get a holiday Loan - Who should get a holiday...

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Who should get a holiday Loan You are head of the loan department at wilshire National Bank and have been approached by two firms in the retail toy business. Each firm is requesting a nine-month term loan to purchase inventory for the holiday season. You must make your recommendations to the loan committee and have gathered the following data in order to make your analysis. Fun Toy company was organized in early 2008. The first year of operations was fairly successful, as the firm earned net income of $45,000. Total sales for the year were $600,000, and total assets at year-end december 31, 2008, were $350,000. A condensed balance sheet at september 30, 2009, follows. The firm is requesting a $100,000 loan. Assets: Cash $60,000 Accounts receivable 65,000 Inventory 125,000 Prepaid expenses 5,000 Furniture and fixtures 155,000 Total Assets 410,000 Liabilities and stockholders’ equity: Accounts payable $70,000 Note payable, due 10/5/09 100,000 Stockholders’ equity 240,000 Total Liabilites and
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Who should get a holiday Loan - Who should get a holiday...

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