Financing needs of Cyrus Brown Essay Example | Topics and Well Written Essays - 500 words

Financing needs of Cyrus Brown - Essay Example C. Consequently, Cyrus Brown Manufacturing will not need any minimum or maximum line of credit since the future prospects are positive. The only reason why external financing or line of credit might be needed is extraordinary events that might result in cash outflow. D. The first conclusion that can be made on the nature of the company is the seasonality of the products sold by the company, since one can see a rise in sales with the culmination in September alongside with the downfall in October and November. Another issue that should be considered when analyzing the financial situation of the company is the lump-sump payments made in June and September. While the ending monthly cash balance changes independent of the amount of sales, when considering the payments made in June and September, the increase in ending cash balance would be gradual and logical. Thus, when keeping in mind these two major issues, there is no reason to doubt financial situation of Cyrus Brown Manufacturing. E. It would be profitable for a bank to have Cyrus Brown Manufacturing as a client.