AFM373 Lecture Notes - Lecture 4: Cash Flow, Value Proposition, Quick Ratio
22 Apr 2017
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Central warehouse outside worcester, massachusetts (fill orders by stores within 24 hours) 10 shops in eastern massachusetts, southern new hampshire and northern connecticut. Retail distributor of auto tires in northeastern us. Value proposition: excellent service and competitive pricing = high customer satisfaction (means that they probably have a solid customer base or at least return clients) Past relationship with bank (gives you an idea of whether bank will want to pay them back) Borrowed funds in 1991, repaid yearly with 125,000/yr. What the company wants: finance anticipated growth of company & expansions of warehouse facilities because current warehouse cannot meet needs of company. : not much change in current ratio and quick ratio maintaining their liquidity: qualitative analysis - create a list of important qualitative factors in comparing alternatives. Cons list for all alternatives, possibly as an exhibit: list of qualitative factors.
