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The Iron Age 1930-12-11: Vol 126 Iss 24

1930 Reed Business Information US

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EIRON ACE New York, December 11, 1930 ESTABLISHED 1855 VOL. 126, No. “BARGAIN” BUYING PENNYWISE WALDO HUTCHINSON inventory about $500,000 ported the bal- ance sheet, June 30, 19—, the “A2 Mfg. Co.” About $400,000 this value was rep- resented raw materials. rally this appeared under the classification “current assets” and was observed that the ratio current assets current liabilities was healthy, from bank- ing standpoint. Also the working capital, repre- sented the difference between the current assets and current liabilities, appeared ample from the classification figures shown the company’s statement. This statement was presented the company’s bankers with request for extended line short- term credit. The moneys applied for were used convert the raw material inventory into finished goods. Orders hand also indicated favorable con- dition. From the information submitted appeared, first glance, that the loan was warranted. Inventory Found Unbalanced detailed investigation the inventory brought light peculiar situation and one that upset the inclusion the major part this inventory value current assets, and hence working capital. The raw material was divided into nine major groups. on…

Citation

The Iron Age 1930-12-11: Vol 126 Iss 24. Reed Business Information US. 1930.