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Gharial LLC is a company that manufactures and leases cars. To increase its production capacity, the CEO of Gharial LLC has decided to build a new manufacturing plant. The company requires a loan from a bank, and submits its financial statements to the bank. The CEO believes that the loan will be approved because of the company’s liquidity. Which of the following strengthens the CEO’s argument. Gharial LLC’s earnings per share are equal to that of other similar companies. The cost of building the manufacturing plant will be offset by the profit Gharial LLC earns. Gharial LLC’s financial statements show a positive working capital. The manufacturing plant will be amortized over the next thirty years.

Operation Management, Management Studies

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