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            | Topic: | Business | 
        
            | Number of pages / Number of words: | 3 / 792 | 
                
    
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However we realize that such reduction rate is impossible to have for prolonged period of time we are going to assume an additional 10% reduction bringing our cash to about 1.37% of sales. Further we are assuming the A/R and inventory to be the same relative to sales and property to remain the same as last year since no purchases or construction were panned...
        
        
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These assumptions give us a TA of 1,096,000.
Knowing the TA we can calculate the Liabilityâs section using two different ways (both attached). One way is to assume that his net worth in the company would remain the same and that the notes to the bank, excess A/P and trade debt would be eliminated by the new note payable...
        
        
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