AFM211 Lecture Notes - Lecture 6: Income Tax

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM211
• Professor: Nancy Vanden Bosch

Document Summary

Brad macdougall: account manager at ccb, review loan request of k for construction of new building, generate enough cash to cover expenses + new loan payment (interest) Demand for foundation where long wait was the norm. 1/3 firms in market was getting out of business. Late 1990s many firms with same services: prices lowered, reduced profit margins. Good reputation in industry: loyalty prominent used same company. Difficulty attracting new customers because of affiliation with sh (competing firm) Dependence on sheppard varied yearly: 30% - 70% sales came from sh. Economy in downturn multi-unit homes more popular increase druthers" sales to other companies. Economy boomed single-family homes more popular druthers and sh business increase. Sales influenced by: economy (drove housing starts that fluctuates with economy, competition, other builders" reluctance to use druthers" services because of affiliation with sh (a competing firm) 30-to-60-day credit terms offered by suppliers: druthers did same for construction companies they offered foundation.