2) I believe that Tad is well in his rights to expand his company and I think it would actually be a good business move for him. Considering the fact that he generates a good amount of cash flow and the company has almost $100,000 to liquidate at all times, I would generate an investment from already existing investors and stock holders in order to make this expansion happen. If Tad were to expand he would most likely increase his inventory turnover because his products would be more widely available to consumers since his inventory turnover is already 4.8.It goes back to the liquidity concept, or having short term solvency. If his company keeps up this pace of selling he will definitely do well with an expansion.
2) I believe that Tad is well in his rights to expand his company and I think it would actually be a good business move for him. Considering the fact that he generates a good amount of cash flow and the company has almost $100,000 to liquidate at all times, I would generate an investment from already existing investors and stock holders in order to make this expansion happen. If Tad were to expand he would most likely increase his inventory turnover because his products would be more widely available to consumers since his inventory turnover is already 4.8.It goes back to the liquidity concept, or having short term solvency. If his company keeps up this pace of selling he will definitely do well with an expansion.