What are the market, competitive, and operating characteristics of Polar? What are the...
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What are the market, competitive, and operating characteristics of Polar?
What are the characteristics of Polars need for external financing under seasonal production? What are the timing, magnitude, and duration of its borrowing needs? Is the company subject to liquidity risk under seasonal production?
What happens to Polars income statements and balance sheets after it adopts level production? How large is Polars financing need from its local bank?
As a commercial lender, would you provide a shortterm loan to Polar to finance its working capital needs if it adopts level production? How attractive is the shortterm financing for a bank?
What are the cost savings from level production? Are they large enough to warrant adoption of level production? How large an inventory writedown will be necessary to eliminate all cost savings?
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