LOAN TO BOOK PUBLISHER. Suppose that RSM Publishing Company, a children’s book publi...

LOAN TO BOOK PUBLISHER. Suppose that RSM Publishing Company, a children’s book publisher, has approached your bank and wants to borrow $250,000 in working capital. The firm provides you with the following balance sheet and income statement data:

2. Assuming a 365-day year, calculate the firm’s asset cash-to-cash cycle, liability cashto- cash cycle, and days deficiency. Using this information and the procedure described in the text, estimate the firm’s working capital loan needs.