Short-term credit decision, Basic Statistics

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Short-Term Credit Decision

In no more than one typed page, provide a statement of your decision to lend or not lend to this company based on your interpretation of the company's short-term prospects (i.e., liquidity, efficiency, short-term viability, and growth).

Research this as you would if you were considering lending $250,000 of your own money to this company to be repaid in 90 days. Be sure to provide a conclusion on your decision to lend to this company in the short run.

Essentially, you are answering whether you believe the company is able to meet current obligations and to use current assets efficiently to produce profits. Also comment on their success in employing financial leverage.


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