... chapter we evaluated three different cases: i.e., in Case 14 - 3, Jenkins Improvement Center because of its lower current ratio, the company tries to qualify for better credit terms. Case 14 -5 of Kelsay MicroLabs which develops and manufactures Pharmaceutical -products, which the company had been growing rapidly during the past 10 years and its profit increased annually by 30 % which the company doesn't pay dividend, but has a very high price earning ratio. Due it its rapid growth and large expenditures which the company faces cash shortages and the company tries to improve its cash shortage by reducing credit periods and reducing its expenditures for R&D by 25 %. Here we evaluated the situation from the perspective of short-term creditors and common stock holders. Case 14 - 6, we evaluated the situation from 5.5% bondholders, 14 % bondholders and in the view of the common stock holders. Where ...

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