other than the balance sheet what do lenders use to see if a company can payback a business loan?
Income statement as well as the balance sheet.
Using the formula most organizations use to identify their capital constraint (Cash Flow
Total Sources of Cash (Debt proceeds, Philanthropy, Other sources of cash)
- Total Uses of Cash (Working Capital, Principal payments, Carry-forward capital (Type 1-3), Cash reserve requirements, other uses of cash)
= Total Cash Available for Capital
- Contingency
= Net Cash Available for Capital Allocation =the Capital Constraint
effective financial reporting systems within an organization
a rolling forecast
what do the financial statements reveal about the reason a firm has requested a loan or the purchase of goods on credit--- what is the firm
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