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dlipping tseknw the averages for ithe daicy peoducis industry. Elliod sat copy of the compater oorpat, together wik a note voicing his, concern Bric Swenson,

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dlipping tseknw the averages for ithe daicy peoducis industry. Elliod sat copy of the compater oorpat, together wik a note voicing his, concern Bric Swenson, p reccipt of the matcrial, he look no sectioa to coerect the si Seal-best, Inc financial analysis) The first inncial analysis indicaled that some problems were d oping: but no ratio was below the level specited in the lean agreement between the bank and Seal-best. However, the second analysia, which wa basel on lhe daa tiven Table1 2 1, 22, snd 2.3, showed that the currest ratlo was betow According to the loan agroemenl, the Cincismati Bank could legally call upon nent was not forthcoming within 10 days, the bank could force Seal-best of the entire bank loan, and if pay- ate bank rupkcy. Ellot had no inentica of actually enforcing, the conirct o the full extent that he legally could, bat he did intend to use the lea impeave its financial picture to prompt Seal-best to lake some decisive action to cal-best is a company that handies s full ie of daicy products in centual and sosthes Obin, I produces both freah dairg prodits and wch storable products a' 'ed milk and cheese. Seasonal working caph able 2.1 SEABEST, INC. BALANCE SEEr YEAR ENDED DECEMBER 31 1956 1973 Roger Elliot, vice president and loan officer of the First National Baek of Cincienati, was recently alerted to the deteriorating fniancial pasition ( one of his clicnts, Seal-best, Inc., by his bank's sewly instituted com s 34,000 31,000 23,800 17000 688,500 102.000 Accomts receiveble lavestory 36.000 204,000 231,200 323,000 170,000 255, 425,000 LIO Toial cunent assets Laad and boilding Machinery Orher fized ansees program. The bank reqaires quarterly fnancial state- $1.000 40,800 108,800 6.000 r25,800 98,000 ments-balance sheels and income statements-From each of its enajor loan customers. This information is punched on cards and led into the computer, wbich then cakculates the key ratios for each customer, chacts trends in these ratios, and compares the statistics of each company with the average ratios and treads of other firms in the same iodusiry. If n ratio of any compaay is sinilicantly poorer than the industry averags, the computer output makes nole of this fact. If the tems of a loaa roquire that certain ratios be maintained at specified mininum levels and these 99,500 3700,400 $894,200 31,2.20,00 Notes payalde, bank 85000 238,0c0 Accosits and noles paya e 4,800 81,600129,200 255,000 64,500 34,000 40,80047,600 1,000 37,400 34,000 4,000 234,600 297,400 326,400 06,000 306,000 305,000 305,000 When an analysis was run on Scal-best three months earlier,Eli noticed that some of the company's ratios were showing dowaward trends, Relained caminp dlipping tseknw the averages for ithe daicy peoducis industry. Elliod sat copy of the compater oorpat, together wik a note voicing his, concern Bric Swenson, p reccipt of the matcrial, he look no sectioa to coerect the si Seal-best, Inc financial analysis) The first inncial analysis indicaled that some problems were d oping: but no ratio was below the level specited in the lean agreement between the bank and Seal-best. However, the second analysia, which wa basel on lhe daa tiven Table1 2 1, 22, snd 2.3, showed that the currest ratlo was betow According to the loan agroemenl, the Cincismati Bank could legally call upon nent was not forthcoming within 10 days, the bank could force Seal-best of the entire bank loan, and if pay- ate bank rupkcy. Ellot had no inentica of actually enforcing, the conirct o the full extent that he legally could, bat he did intend to use the lea impeave its financial picture to prompt Seal-best to lake some decisive action to cal-best is a company that handies s full ie of daicy products in centual and sosthes Obin, I produces both freah dairg prodits and wch storable products a' 'ed milk and cheese. Seasonal working caph able 2.1 SEABEST, INC. BALANCE SEEr YEAR ENDED DECEMBER 31 1956 1973 Roger Elliot, vice president and loan officer of the First National Baek of Cincienati, was recently alerted to the deteriorating fniancial pasition ( one of his clicnts, Seal-best, Inc., by his bank's sewly instituted com s 34,000 31,000 23,800 17000 688,500 102.000 Accomts receiveble lavestory 36.000 204,000 231,200 323,000 170,000 255, 425,000 LIO Toial cunent assets Laad and boilding Machinery Orher fized ansees program. The bank reqaires quarterly fnancial state- $1.000 40,800 108,800 6.000 r25,800 98,000 ments-balance sheels and income statements-From each of its enajor loan customers. This information is punched on cards and led into the computer, wbich then cakculates the key ratios for each customer, chacts trends in these ratios, and compares the statistics of each company with the average ratios and treads of other firms in the same iodusiry. If n ratio of any compaay is sinilicantly poorer than the industry averags, the computer output makes nole of this fact. If the tems of a loaa roquire that certain ratios be maintained at specified mininum levels and these 99,500 3700,400 $894,200 31,2.20,00 Notes payalde, bank 85000 238,0c0 Accosits and noles paya e 4,800 81,600129,200 255,000 64,500 34,000 40,80047,600 1,000 37,400 34,000 4,000 234,600 297,400 326,400 06,000 306,000 305,000 305,000 When an analysis was run on Scal-best three months earlier,Eli noticed that some of the company's ratios were showing dowaward trends, Relained caminp

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