The account manager with the Canadian Commercial Bank (CCB) in Barron, Ontario, valued apply its latest loan. The co-founder of Druthers Forming Limited (Druthers), a long-time customer CCB was Druthers’ application to construct a $ 350,000 loan, a new building to house existing operations. Construction was already in full swing. The account manager also noted that Druthers was currently without a credit line, and he wondered if the deal would have enough money to generate cove … Read more »

The account manager with the Canadian Commercial Bank (CCB) in Barron, Ontario, valued apply its latest loan. The co-founder of Druthers Forming Limited (Druthers), a long-time customer CCB was Druthers’ application to construct a $ 350,000 loan, a new building to house existing operations. Construction was already in full swing. The account manager also noted that Druthers was currently without a credit line, and he wondered if the deal would have enough money to generate to cover expenses, including the new loan payments. He had a week to decide whether the means and give relevant reasons for its decision. To assist in its decision, the account manager began by assessing financial performance with cash flow statement and ratio analysis, financial statements projection, and the consideration of working capital requirements, including a sensitivity analysis on the days of accounts receivable, inventory and / or liabilities.
«Hide

from
Elizabeth M.A. Grasby,
Julie Harvey
Source: Ivey Publishing
8 pages.
Release Date: 10 November 2009. Prod #: 909N06-PDF-ENG
Druthers Forming Limited HBR case solution