Aitken Company needs cash The company has several hot

new
Aitken Company needs cash. The company has several hot new products and sales are
growing rapidly. The controller has just presented CEO Jim Aitken the following balance sheet
updated through today, saying, “We’ve got to raise $90,000 cash immediately.”The controller
proposed three options to raise the $90,000:(1) Obtain a short-term bank loan, (2) Sell new
shares of common stock, or(3) Issue long-term bonds payable. She also presented the CEO
with the following information about financial ratio benchmarks for companies in their
industry.RequiredA. Compute today’s value of the four ratios for which benchmarks are
given.B. Evaluate each value computed in part A with its industry benchmark. Which ratio
values are strong? Which are weak?C. Compute pro-forma (projected) ratio values under each
of the three financing options.That is, for each option, what would be the new ratio values
immediately after that option was implemented?D. Evaluate your results from part C. Which
financing option would best strengthen the company’s financial position as measured by the
four ratios considered?Explain.
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Aitken Company needs cash The company has several hot new
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