brockman guitar company is in the business of manufacturing top-quality, steel-string folk guitars. in recent years, the company has experienced working capital problems resulting from the procurement of factory equipment, the unanticipated buildup of receivables and inventories, and the payoff of a balloon mortgage on a new manufacturing facility. the founder and president of the company, barbara brockman, has attempted to raise cash from various financial institutions, but to no avail because of the company’s poor performance in recent years. in particular, the company’s lead bank, first financial, is especially concerned about brockman’s inability to maintain a positive cash position. the commercial loan officer from first financial told barbara, "i can’t even consider your request for capital financing unless i see that your company is able to generate positive cash flows from operations."