Discussion Post: Entrepreneur Finance
• Why does BL need to borrow money to support its profitable business? Draw up a Fund Flow Statement, ie., Funding and Uses.
o Funding would include Bank Borrowing, Trade Credit, Retained Earnings, Cash, Accrued Expenses
o Uses would include Inventories, A/R, Buyout, Reduction in debt, increase in fixed assets / accounts
• Will the bank credit of $465,000 be sufficient to fully meet the company's requirements at least over the next year? Why or why not? What does it depend on?
• How attractive is it for BL to take the trade discount? How much do you really save from taking advantage of it per year?
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.