Question
I need to Calculate the duPont relationship for Seal-Best. Compare it with the same calculations for the Industry. I only got the ratios for the
I need to Calculate the duPont relationship for Seal-Best. Compare it with the same calculations for the Industry. I only got the ratios for the Industry.
The second part of the question is:
What amount ofinternally-generated funds would be available for the retirement of the loan? If the bank were to grant the additional credit and extend the increased loan from a due date of February 1 to June 30, would the company be able to retire the loan on June 30? (Hint: To answer this question, consider profits and depreciation as well as the amount of inventories and receivables that would be carried if Seal-best's inventory turnover and average collection period (Days Sales Outstanding) were at industry average levels, that is, generating funds by reducing inventories and receivables to industry averages.)
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