The manager of accounts at a national bank is assessing the fills of Northstar Aerospace, which needs to revive and raise its line of credit and term loan. Northstar Aerospaceis a public conglomerate that had businesses in four areas: industrial technology, pumps, aerospace and semiconductors. After several years with reasonable success, the firm focused on the aerospace business and thus, reduced its diversity.
Most of the company's earnings come from military contracts; yet, worth $260 million the company was experiencing a backlog of orders due to the manufacturing cycle. The account supervisor must size up the business and endeavor the balance sheet and income statement for the approaching year to decide whether to approve the line of credit and if so, what the terms should be.
Publication Date: 02/27/2003
This is just an excerpt. This case is about Finance
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