Proforma Financial Statement Worksheet
As a condition of its loans, lenders require that Motorway maintain a current ratio of at least 1.60 and times interest earned of 5.00 or higher. To increase sales, Motorway extends credit terms 2/10, net 30 instead of the industry average net 30 and also provides extensive price discounts. Inventory is purchased on terms 3/15, net 45. ................
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