Question: 1 . Why has a profitable company like Clarkson had to borrow so much? 2 . Should Clarkson take trade discounts on the given terms?

1. Why has a profitable company like Clarkson had to borrow so much?
2. Should Clarkson take trade discounts on the given terms?
3. Has Mr. Clarkson done a realistic job of assessing his external financing needs? Will the proposed$1,200,000line of credit be sufficient? How much should he seek to borrow?

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