Short term credit decision

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7) Short-Term Credit Decision: In no more than one typed page, provide a statement of your decision to lend or not lend to each firm based on your interpretation of their short-term prospects. Analyze this as you would if you were considering lending $1 billion of your own money to the firms to be repaid in 90 days. Essentially, you are answering whether you believe the firm is able to meet current obligations and to use current assets efficiently to produce profits. Comment on their success in employing operating leverage. Make sure to address the following: short-term viability, short-term growth, cash flow, working capital, efficiency, and liquidity.

Reference no: EM13519922

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