Abstract
A credit analyst for a furniture manufacturer is confronted with two customers who have exceeded their credit limits. The financial performance of each has been weak, and one of the customers has a highly leveraged balance sheet. Industry conditions are weak; the manufacturer apparently has excess capacity; and the credit analyst is caught between the conflicting demands of the sales managers and the credit manager. The case provides an opportunity for ratio analysis.
Keywords: Credit;
Financial Statements;
Cost vs Benefits;
Outcome or Result;
Performance Evaluation;
Forest Products Industry;
Utilities Industry;