The general manager of a medium-sized manufacturing company wants to renew the company's operating loan. In discussions

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The general manager of a medium-sized manufacturing company wants to renew the company's operating loan. In discussions with the bank's lending officer, the general manager says: 'As the accompanying financial statements show, our working capital position has improved during the past year, and we have managed to reduce operating expenses significantly.'

The partial financial statements are shown below.

Current assets Cash Accounts receivable Inventories Total current assets Current liabilities Accounts payable

1. Evaluate the general manager's comments. Incorporate appropriate ratio analysis in your discussion.
2. What additional financial information (if any) would you request from the general manager? Why?

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Financial Accounting An Integrated Approach

ISBN: 9780170349680

6th Edition

Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson

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