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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 392 |
Essay's paper body
refuses to rework the loan covenants. The loan covenant of interest is tangible net worth, which
the bank has set at a minimum of $12 million. Without the switch, the LIFO method would
report a tangible net worth of $9,828,000, which would violate this loan covenant. Under the
FIFO method, the tangible net worth would increase by $4,215,000, and would yield a total of
$14,043,000...
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refuses to rework the loan covenants. The loan covenant of interest is tangible net worth, which
the bank has set at a minimum of $12 million. Without the switch, the LIFO method would
report a tangible net worth of $9,828,000, which would violate this loan covenant. Under the
FIFO method, the tangible net worth would increase by $4,215,000, and would yield a total of
$14,043,000...
Essay fragment
General points of the essay
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