This problem is a classic example of a company whose production precedes sales
and has a cash flow problem. This is the reason farmers need loans in the
planting season and pay them back in the harvest season. It is the reason
seasonal firms need financing at the beginning of the season. It is a classic
example of a firm that has a cash flow problem due to its buildup in accounts
receivable and inventories. this is typical for small and medium size
businesses that approach banks for financing. You are a loan officer and need
to make a decision. ( Please attach your solution steps and analysis like and essay.)
