Cheap Stuff, Ltd. is a distributor of goods to discount stor…

Cheap Stuff, Ltd. is a distributor of goods to discount stores. The company has experienced 12% sales growth over the last three years. Despite continued economic declines projected, the company is forecasting continued sales growth of 10-15% each year over the next 3 years. Which of the following sources of financing would be most appropriate to support related increases in receivables and inventory?

During a recent meeting with Your Bank’s loan committee, you…

During a recent meeting with Your Bank’s loan committee, you were asked to determine why Clear Lights, a manufacturer of lights used in office buildings, requested financing. It was stated that the company had positive cash after debt amortization. What then would be the cause of the financing request?