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5. Wintersports Superstore, the largest snowmobile and snowshoe dealer in South Florida, had a very good winter season last year. The company purchased many new
5. Wintersports Superstore, the largest snowmobile and snowshoe dealer in South Florida, had a very good winter season last year. The company purchased many new models between April and November, most of which were sold with significant profit margins. By the end of the winter season, and after paying off short-term inventory loans, the company's cash balance was significantly higher than usual. The Director of Sales believes that this was an unusual situation, and that Florida residents might not purchase as many snowmobiles in the coming winter as in the previous winter. With that in mind, management is considering investing the cash in long term corporate bonds issued by a company based in China. Discuss
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