Financial Decision Making Cartwright timberland fede circumscribe- Memorandum I would suggest Cartwright timberland Comp any(prenominal) not to take any more loans from Northrop Bank. As I analyzed financial dimensionn of Cartwright Lumber Company, their performances from 2001 to 2004 pretend been gone down rapidly. The Leverage ratio have shown that Cartwright Lumber Company already have three-times of debts comp bed to equity. It government agency that if Cartwright Lumber Company cannot interest to creditors it would cause going to bankruptcy. I would recommend that financial support by issuing stocks. Dividends to shareholders are not mandatory. But gainful interest to creditors is mandatory. Therefore, company could operate cash balance to indue to purchase equipment. 1. Profitability| 2001| 2002| 2003| 2004 premier Quarter| ROA| 5.2%| 4.6%| 4.7%| 0.8%| ROE| 11.5%| 11.2%| 12.6%| 2.5%| Â | Â | Â | Â | Â | 2.Liquidity| 2001| 2002| 2003| 2004 number one Quarter| real balance| 1.8| 1.6| 1.5| 1.4| Acid Ratio| 0.9| 0.7| 0.7| 0.5| Â | Â | Â | Â | Â | 3.Efficiency| 2001| 2002| 2003| 2004 First Quarter| asset disturbance| 2.9| 0.
8| 0.8| 0.2| A/R turnover rate| 9.9| 2.6| 2.5| 0.5| A/R collection period| 37| 143| 146| 673| scrutinise Turnover| 5.1| 1.3| 1.3| 0.3| Inventory Turnover Period| 71.4| 287.0| 278.5| 1362.1| Operating bike| 108.2| 429.5| 424.6| 2035.2| meliorate Asset Turnover| 13.5| 3.8| 4.5| 1.1| Â | Â | Â | Â | Â | 4.Leverage| 2001| 2002| 2003| 2004 First Quarter| Debt Ratio| 98.3%| 109.6%| 120.0%| 126.1%| Debt-to- rectitude Ratio| 216.3%| 265.5%| 321.8%| 3! 86.6%| Time-Interest-Earned Ratio| 3.8| 3.1| 2.6| 2.1|If you want to get a in effect(p) essay, order it on our website: BestEssayCheap.com
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