1
answer
0
watching
80
views
17 Jun 2019
Beacon applies for credit to the Big Wholesale Lumber Company(BWLC). Since Beacon is a brand new business and has no history ofoperations the credit manager for the BWLC is at first reluctant toapprove the request. Eventually, after heated discussions, sheagrees to a $10,000 limit, provided that the company's ratio ofDebt to Total Assets does not rise above .70, and that its CurrentRatio does not fall below 2.45.
Beacon applies for credit to the Big Wholesale Lumber Company(BWLC). Since Beacon is a brand new business and has no history ofoperations the credit manager for the BWLC is at first reluctant toapprove the request. Eventually, after heated discussions, sheagrees to a $10,000 limit, provided that the company's ratio ofDebt to Total Assets does not rise above .70, and that its CurrentRatio does not fall below 2.45.
Patrina SchowalterLv2
17 Jun 2019
