Question
Crockett Manufacturing and Service Company holds a sizeable inventory of dryers and washing machines, which it hopes to sell retail dealers over the next six
Crockett Manufacturing and Service Company holds a sizeable inventory of dryers and washing machines, which it hopes to sell retail dealers over the next six months. These appliances have a total estimated market value currently of $25 million. The firm also reports accounts receivable currently amounting to $12,650,000. Under the guidelines for taking collateral discussed the reading assignments, what is the minimum size loan or credit line Crockett is likely to receive from its principal lender? What is the maximum size loan or credit line Crockett is likely to receive? Show all computations.
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