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A company. has approached a bank and wants to borrow $250,000 in working capital. The firm provides the bank with the following financial statements. (10
A company. has approached a bank and wants to borrow $250,000 in working capital. The firm provides the bank with the following financial statements. (10 points) Sales: $4,622,800 COGs: $3,504,100 Operating expense: $893,000 Purchase: $3,116,000 75,000 Assets Liability & Equity Cash 50,000 A/P 166,000 A/R 375,000 Accrued Expense 37,000 Inventory 510,000 Notes payable (due in 18 months) Fixed Asset 925,000 Current maturity of LT debt 25,000 Total Asset 1,860,000 LT Debt 475,000 Equity 1,082,000 Total L&E 1,860,000 Calculate Firms: Gross Profit Margin, Net Working Capital, and Working capital loan needs
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