Description
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Explanation & Answer

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Outline
Memo
Management Questions
Introduction
Explains the concept of financial cashflows and CC&Rs violations
The operating cycle of Bob Smith Inc
The covenants within the CC&Rs that the company did not comply with
Demonstration of the Bob Smith Inc. unable to meet the loan requirement
The strategy by the management to comply with the CC&Rs they agreed to
The decision ofloan committee with regard to the loan renewal
The Common Sized Financial Statement (CC&R’s)
The Cash Flow Statement
Management Question
Students Name
Institutional Affiliation
2
Memo to address the Bob Smith Inc. Scenario
Loan agreements and financial cash flows include procedures implemented for handling
CC&Rs violations and requests and variances from the CC&Rs. Since policies are created to
guide financing procedures, the information helps financial institutions in substantiating loan
renewal or denial requests. There are various reasons why administrators and financial backers
play out this kind of investigation. Foreseeing what is to come is an innately unsafe business, so
it is judicious to examine as various instances of what could occur as is sensibly conceivable
when loaning money to businesses.
The operating cycle of Bob Smith Inc
The operating pattern of an organization comprises the time span between the obtainment
of stock and the assortment of inventory from receivables. The operating cycle for Bob Smith
Inc. depicts the time allotment between the company's cost on cash and assets, wages, and other
costs, including inflow of cash from ...
