Case Analysis: Bodie Industrial Supply Inc. Case Solution
Recommendations
The company is ready to take a loan of 200,000 CDN from its bank known as CCB to finance its future project. However, the company is on the track to expand its warehousing facility, which will allow it to store more goods and increase its sales. Moreover, the owner of the business has forecasted that without expansion, it would be impossible to increase sales in the future and to stay in track with the market opportunities. Therefore, the company is considering taking a loan from its local bank, which will help the business to achieve its desired expansion and to operate its activities successfully in the market. On the other hand, it has also been noted that the company has taken so many loans from the same bank to fulfill its financial needs in past. Therefore, it can also be seen that the company’s relationship with its banks is quite strong. As far as the recommendations are concerned, it can be said that the most feasible idea for the company is to take the loan on the same conditions as stated in the case. On the other hand,the other assumptions and conditions are also deployed to test the feasibility of the project and findings showed binary outcomes i.e. negative and positive.
Apart from that, the most likely situation suggested that the company has to run its operations in the same way as it is operating today. However, minor changes which were recommended by the owner will be counted a lot since, when the analyst deployed those assumptions in the same scenario, they generated outstanding results regarding operational and financial performance. Therefore, it is suggested by the author that the company has to stick to the same plan of taking a loan and increasing sales. However, there is a lack of evidence to show that whether all the assumptions and different scenarios have been tested to draw conclusions, and the answer is that all the calculations and assumptions are mentioned and calculated in the excel spreadsheet. On the other hand, the results and evidence of all those assumptions are also present in the same file and will also be discussed in this paper in the next section.
Discussions and analysis
In the sheet namely forecast 1, the analyst was required to make the analysis on the first simple assumption drawn by the company’s owner which was that the sales would be 2.8 and 3.2 million for the year 2007 and 2008 respectively. Also, when the analyst put the same assumptions, it has been noted that the assets of the company were increased from 1 to 1.5 million indicating almost 50% increase in the total assets. However, the short and long term liabilities were also increased by a significant amount....................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Heavy Metal (B): Baosteel Struggles in Brazil
The Credit Crisis of 2008: An Overview
Random House
Great Atlantic & Pacific Tea Company Inc.
Luna Pen (A)
Cultural challenges of integration: Value creation and daiichi sankyo’s indian acquisition
EDWARD JONES
PCAOB Guidance: Docket 038
Katherine Rally
Fashion in Digital age
