AFM391 Lecture Notes - Lecture 1: Wrongful Dismissal, Financial Statement
8 Dec 2017
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Hot tub galleria (htg), a private company based in toronto, is the city"s largest manufacturer and vendor of hot tubs for the hotel industry. Htg is owned by adrian zhang, who runs the operations side of the business. Ritika zhang, manages all of the accounting functions. Adrian performed market research and determined that the next step for htg is to expand sales to across the country. Htg has slowly reduced its debt load, but still relies on some debt to finance operations. Htg asked the bank for additional financing and the bank agreed to provide . 5 million at face value, at a discount rate of 9%, interest payable annually. The bank indicated that audited financial statements would be required this year, and htg would need to maintain a debt to equity ratio of 1:1, where debt is defined as all liabilities.
