Checking Out a New Customer Natalie Field, the owner of New Age Manufacturing, comes to you to arrange for the buying on credit of materials for her business. She advises you that the orders will amount to approximately $500 000 a year. This amount of new business could have a very beneficial effect on your company. You would even have to expand your own facilities to take advantage of it. You tell Ms. Field that you need time to consider the proposal When you approach your banker for a loan, she advises you to find out as much as you can about New Age Manufacturing. You go to a credit investigation bureau, which provides you with the following balance sheet totals for New Age Manufacturing. Assets $450 000 Liabilities 445 000 Equity 5 000 Questions 1. What conclusion would you draw from the balance sheet totals? 2. What dangers are there in dealing with New Age Manufacturing? 3. Would you do business with Ms. Field? Write a short memo to your banker explaining your decision and giving a reason. Use the memo form given in the Skills Appendix