Teaching note for product 9A99N022.

A machine tools distributor is planning to build an extension onto its warehouse. The owner is concerned how to source the $100,000 required to finance the expansion. Options include borrowing from a bank, borrowing from a private lender, or issuing shares. This case is intended to introduce students to financial analysis. The concepts of ratio analysis, projected statements and debt repayment are central to the case. The case requires students to .....more

The manager of the London branch of Garrett Truck Company Limited, had decided to hire an extra salesperson. He is faced with the problem, however, of deciding exactly what new job should be created and how best to fill the new position. His alternatives are: (1) create a fourth territory, (2) include management of used truck sales as part of the job, or (3) make one of the salespeople responsible solely for fleet sales.