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How a profitable company could be running short of cash

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Cartwright Lumber Discussion Problem

1. Cartwright is by all accounts a successful, profitable company. However, the company seems to be having trouble managing their cash - making sure they have enough on hand to continue operations. They have been dependent on external financing and this is starting to cause some problems. Write a brief paragraph on how a profitable company could be running short of cash. It can be a general discussion, or you can mention specifics about Cartwright in your discussion.

2. When using ratio analysis, it is critical that good benchmarks be used. Write a brief paragraph about using appropriate comparisons in ratio analysis (3-5 sentences should be fine).

Attachment:- cartwright_lumber_company_hbr.pdf

Reference no: EM131434969

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