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Unformatted text preview: accumulated much in excess of planned amounts. Profits and retained earnings thus fell sharply. Dynashears was therefore unable to pay off its bank loan during the early part of 1991. The treasurer of Dynashears requests an extension of the companys loan for the second time in April 1991 and indicates that the loan probably will have to be increased beginning in June. Questions: 1. Why was Dynashears unable to repay its bank loan by March 31st, 1991, as originally forecast? 2. Should Mr. Winthrop extend the Dynashears loan, and indeed increase it? 3. Which of the following options is best for Mr. Winthrop? a. Extend and increase the loan; b. Extend and increase the loan, but ask for security; c. Refuse the loan. March 3 rd , 2008; revised September 24 th , 2009...
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- Spring '07