Case Description:

Suppose that you currently work with a team of credit analyst interns at a bank that is

reviewing a renewal application for an existing line of credit from a client, Timberhaven

Homes Ltd$.($Timberhaven$).$ Timberhaven builds simple modern production houses for

first$-$time and move$-$up homebuyers.

Timberhaven is currently using its maximum allowable amount of line of credit and is

asking for an additional amount, up to $$500,000,$ to manage its working capital needs.

You must decide if Timberhaven should be provided any additional amount or if the

existing limit should stay in place.

As part of your due diligence, you are reviewing data from $10$ other construction

companies located in the same geographic area that provide services ranging from

industrial and corporate construction to housing construction in new residential areas,

and custom builds.

An assistant has provided a file $($see "Timberhaven Case Data $($Winter $2024).$xlsx$"$

attached in Assignments tool on OWL$),$ with comparative data that you have requested

for all $10$ companies. Note that all the financial data in the file is in thousands of dollars.

Your team has been asked to make a recommendation about Timberhaven's request to

management.