Nate Lobell is the president and sole owner of Gal's Pal Apparel,Inc.Gal's Pal has two wholly owned subsidiaries with which it occasionally transacts business.Nate has been trying to get the consolidated net income of Gal's Pal above the $1,000,000 mark so that he can qualify for a line of credit with his bank.This year Gal's Pal is on track to earn approximately $700,000 after all costs and expenses.Likewise,each subsidiary should have roughly $200,000 in net earnings by year end.Approximately 20 percent of the net earnings of Gal's Pal will come as a result of sales to the subsidiaries,which in turn sold the items to customers for a similar amount of profit.Nate is elated to learn that the expected total earnings of the three companies added together will exceed his $1,000,000 goal.Assuming the businesses finish the year as expected,discuss the result of Nate's request for a line of credit.

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The Answer of Nate Lobell is the president and sole owner of Gal's Pal Apparel,Inc.Gal's Pal has two wholly owned subsidiaries with which it occasionally transacts business.Nate has been trying to get the consolidated net income of Gal's Pal above the $1,000,000 mark so that he can qualify for a line of credit with his bank.This year Gal's Pal is on track to earn approximately $700,000 after all costs and expenses.Likewise,each subsidiary should have roughly $200,000 in net earnings by year end.Approximately 20 percent of the net earnings of Gal's Pal will come as a result of sales to the subsidiaries,which in turn sold the items to customers for a similar amount of profit.Nate is elated to learn that the expected total earnings of the three companies added together will exceed his $1,000,000 goal.Assuming the businesses finish the year as expected,discuss the result of Nate's request for a line of credit.

Nate Lobell Is the President and Sole Owner of Gal's