TWO PAGES 1 – Why does BL need to borrow money to support its profitable business? Draw up a Fund Flow Statement, ie., Funding and Uses a – Funding would include Bank Borrowing, Trade Credit, Retained Earnings, Cash, Accrued Expenses b – Uses would include Inventories, A/R, Buyout, Reduction in debt, increase in fixed assets / accounts2 – Will the bank credit of $465,000 be sufficient to fully meet the company’s requirements at least over the next year? Why or why not? What does it depend on? 3 – How attractive is it for BL to take the trade discount? How much do you really save from taking advantage of it per year? For more information read this: https://en.wikipedia.org/wiki/Flow_of_funds
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