Mini Case: 4 - 13 MINI CASE The first part of the case, presented in Chapter 3, discussed the situation that Computron Industries was in after an expansion program. Thus far, sales have not been up to the forecasted level, costs have been higher than were projected, and a large loss occurred in 2007, rather than the expected profit. As a result, its managers, directors, and investors are concerned about the firm’s survival. Donna Jamison was brought in as assistant to Fred Campo, Computron’s chairman, who had the task of getting the company back into a sound financial position. Computron’s 2006 and 2007 balance sheets and income statements, together with projections for 2008, are shown in the following tables. Also, the tables show the 2006 and 2007 financial ratios, along with industry average data. The 2008 projected financial statement data represent Jamison’s and Campo’s best guess for 2008 results, assuming that some new financing is arranged to get the company “over the hump.” Jamison examined monthly data for 2007 (not given in the case), and she detected an
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