Assignment

Question 4: Repayments of its Loan

Based on the information provided and analyses that has been conducted, including forecasts and analysis of Jackson’s credit, the Company will be in a flexible position to repay its loan basing on the cash budget. However, it has to be noted that considering the forecasted credit, the repayment will be subject to huge sales as far as the month of June is concerned. The point is, is the sales will not be generated as expected then there is likelihood that the Company will not be in a position to make repayment to its loan on time when it comes to September as per the schedule the case has provided.