• There are three typos in reference to timing:

• Page 2, paragraph 2, sentence 2 should read: The business’s success was such that in August 2006, BIS purchased…..

• Page 3, paragraph 4, sentence 1 should read: If the loan was approved, principle payments would be $40,000 each year, beginning February 1, 2008, and….

• Page 6, Exhibit 3, footnote 2 should read: Balance owing on a truck purchased in 2001. Loan was repaid in April 2007.
   

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BODIE INDUSTRIAL SUPPLY INC. Je Hanvey revised this case (originally prepared by O. Richardson. D. G. Burgoyne and A Humphrey under the supervision of Ekzabeth MA Grasby solely to provide muter for class discussion The auors do not intend to ustrate ether eflective or inefective handing of a managerial stuation The authors may have diaguised certain names and other identilying information to protect confidentiaity. vey Management Servces prohibita any form of reproduction, storage or tansmital wthout ts writen permission This material a not covered ander authorization from CanCopy or any reproduction nights organization To order copies or request permission to Westem Ontario, London Ontario, Canada. NA KT: phone (S1 061-320 fax (519 6er-3882: e-mal casevey o.ca Cooriat 200. Mananert Senice It was late October 2006 when Brad MacDougall, acount manager at the Canadian Commercial Bank (CCB) in Barron, Ontario, reviewed a loan request for S200,000 from Liz Bodie. As owner of Bodie Industrial Supply Inc. (BIS), a distributor of commercial-grade tools, parts and equipment, Bodie requested the long-term lean to cover constraction costs associated with a major expansion to BIS's warchouse. BIS was currently operating without a line of credit, and MacDougall wondered whether the business could generate enough cash to cover its expenses, including the new loan payments. MacDougall had to be thorough in his analysis because he knew Bodie was relying on financing from the bank for the expansion. COMPANY BACKGROUND In 2003, Liz Bodie purchased the business from its previous owner and changed the company's name to reflect its new ownership. Prior to acquiring the business, Bodie had worked for a variety of different companies, including one of BIS's current metropolitan-based competitors. During those years, it was Bodie's long-term ambition to operate her own business. Her first entreprencurial venture was a franchised retail hardware store that she operated for several years before selling it to acquire BIS. Drawing on her work experience, Bodie expanded BIS into a full-service distributor of top-line, brand name, new and used certified machine tools, maintenance parts and related equipment for the construction, utility and farming markets. The company strove to uphold its reputation as the single source for all industrial equipment needs. Although BIS conducted business country- wide, BIS's hometown of Barron, approximately 100 kilometres northeast of a large metropolitan city, was currently the largest and fastest growing industrial centre in its region BODIE INDUSTRIAL SUPPLY INC. Je Hanvey revised this case (originally prepared by O. Richardson. D. G. Burgoyne and A Humphrey under the supervision of Ekzabeth MA Grasby solely to provide muter for class discussion The auors do not intend to ustrate ether eflective or inefective handing of a managerial stuation The authors may have diaguised certain names and other identilying information to protect confidentiaity. vey Management Servces prohibita any form of reproduction, storage or tansmital wthout ts writen permission This material a not covered ander authorization from CanCopy or any reproduction nights organization To order copies or request permission to Westem Ontario, London Ontario, Canada. NA KT: phone (S1 061-320 fax (519 6er-3882: e-mal casevey o.ca Cooriat 200. Mananert Senice It was late October 2006 when Brad MacDougall, acount manager at the Canadian Commercial Bank (CCB) in Barron, Ontario, reviewed a loan request for S200,000 from Liz Bodie. As owner of Bodie Industrial Supply Inc. (BIS), a distributor of commercial-grade tools, parts and equipment, Bodie requested the long-term lean to cover constraction costs associated with a major expansion to BIS's warchouse. BIS was currently operating without a line of credit, and MacDougall wondered whether the business could generate enough cash to cover its expenses, including the new loan payments. MacDougall had to be thorough in his analysis because he knew Bodie was relying on financing from the bank for the expansion. COMPANY BACKGROUND In 2003, Liz Bodie purchased the business from its previous owner and changed the company's name to reflect its new ownership. Prior to acquiring the business, Bodie had worked for a variety of different companies, including one of BIS's current metropolitan-based competitors. During those years, it was Bodie's long-term ambition to operate her own business. Her first entreprencurial venture was a franchised retail hardware store that she operated for several years before selling it to acquire BIS. Drawing on her work experience, Bodie expanded BIS into a full-service distributor of top-line, brand name, new and used certified machine tools, maintenance parts and related equipment for the construction, utility and farming markets. The company strove to uphold its reputation as the single source for all industrial equipment needs. Although BIS conducted business country- wide, BIS's hometown of Barron, approximately 100 kilometres northeast of a large metropolitan city, was currently the largest and fastest growing industrial centre in its region

Answer rating: 100% (QA)

BODIE INDUSTRIAL SUPPLY INC is a full help merchant of top line brand name new and utilized confirme... View the full answer