Question
Paradise Manufacturing and Service Company has a considerable inventory of dryers and washing machines, which it expects to sell to retail distributors over the next
Paradise Manufacturing and Service Company has a considerable inventory of dryers and washing machines, which it expects to sell to retail distributors over the next six months. These items have a total estimated market value of currently $ 25 million. The firm also reports accounts receivable that currently amount to $ 12,650,000. Under the guidelines to take guarantees discussed the assigned readings. What is the minimum loan size or line of credit that Paradise will probably receive from its main lender? What is the maximum loan size or line of credit that Paradise is likely to receive? Show the calculations.
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