Question: Adam found it impossible to understand how such successful year could have landed the company in financial difficulties. The company had always had good relationships

Adam found it impossible to understand how such successful year could have landed the company in financial difficulties. The company had always had good relationships with its bank, and the interest rate on its bank loans was a reasonable 8 percent a year (or about 2 percent a quarter). Surely, Adam reasoned, when the bank saw the projected sales growth for the rest of 2012, it would realize that there were plenty of profits to enable to start repaying its loans

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