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You received an internship with Barclays Bank, an international powerhouse in banking to work alongside Marcus Cochran, a senior credit analyst. Marcus assigned you
You received an internship with Barclays Bank, an international powerhouse in banking to work alongside Marcus Cochran, a senior credit analyst. Marcus assigned you to the Computron Industries account. Computron Industries, a manufacturer of computer components had doubled its plant capacity, opened new sales offices outside its home territory, and launched an expensive advertising campaign. Marcus asked you to evaluate the impact of the changes mentioned above. So, you began by gathering financial statements and other data that are shown below. Balance Sheets Assets Cash and equivalents Short-term investments Accounts receivable 2020 2021 $ 60 $ 50 100 10 400 520 Inventories 620 820 Total current assets $ 1,180 $ 1,400 Gross fixed assets $ 3,900 $ 4,820 Less: Accumulated depreciation 1,000 1,320 Net plant and equipment $ 2,900 $ 3,500 Total assets $4,080 $ 4,900 Liabilities and equity Accounts payable Notes payable Accruals $ 300 $ 400 50 250 200 240 Total current liabilities $ 550 $ 890 Long-term bonds 800 1,100 Total liabilities $ 1,350 Common stock Retained earnings Total equity es and equity 1,000 1,000 1,730 1,910 $ 2,730 $ 2,910 $4,080 $ 4,900
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