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A small manufacturing company has purchased an innovative and complex new machine. The equipment is for a vital part of the manufacturing process. Despite the concerted efforts of the equipment maker and the company's production and manufacturing staffs, the new machine fails to achieve the promised output. The purchase of this equipment was supposed to be the first step in a move toward advanced manufacturing techniques. The vice-president, production, must decide whether to continue to attempt to get the equipment running well or to exercise his option of returning the system and getting back the purchase price plus a penalty fee.

The case describes the startup circumstances for Three Buoys Houseboats. It is an example of several young individuals stumbling into an opportunity and deciding to run with it without much evaluation, assessment or planning. The Three Buoys Houseboat case 9A86F005 is a detailed description of what actually happened.

A small American cookware manufacturer must decide whether to try to penetrate the Japanese market. The risks were enormous because major commitments were needed and the sales potential in a new market was hard to pin down. (Two sequels to this case are available, Cambridge Products Inc. (B) and Cambridge Products Inc. (C).)

A small American cookware firm has been negotiating with the Japanese to sell in Japan. Major commitments had been made to develop the product. Just when everything seemed settled, the Japanese wholesaler announced that modifications were needed. Should the company modify its product for the Japanese market? (This is the second case in a series titled Cambridge Products Inc. (A), Cambridge Products Inc. (B) and Cambridge Products Inc. (C).)

A small American cookware manufacturer has been very successful in selling to Japan. Suddenly the market in Japan has collapsed. What should be done now? (This is the last case in a series titled Cambridge Products Inc. (A), Cambridge Products Inc. (B) and Cambridge Products Inc. (C).)

This case is an introductory exercise in financial analysis. A complete financial analysis, including ratios and a statement of changes in financial position, is required.

The president of Medtron Limited, a fast growing Canadian manufacturer of wheelchairs, was preparing for a strategic planning session with his management group. In recent years, Medtron had met its sales growth and dealer expansion objectives and earned healthy profits. The president saw tremendous potential for further growth. He was concerned nevertheless that growth might outpace the company's financial and manufacturing capabilities and that a larger scale operation would create inflexibility. Our planning job is to identify any constraints and develop a strategy that maintains our reputation for quality products and fast, personalized service. As competitive conditions became more difficult and the company's environment changed, the president had to decide how aggressively Medtron should grow. What are management's realistic choices and which of these decisions would you recommend?

The general manager of a division of an international cosmetic company must decide hoe to deal with a lack of response to a memo. The general manager wrote to the vice-president of operations to elicit some response from Operations that would lead to better communication between marketing and operations. It is now only three days until the next meeting between operations and marketing and the vice-president has made no response to the general manager's memo.

Johnson & Burgess, one of Canada's most successful and largest advertising agencies, must make a key ethical decision. It has been invited to make a speculative presentation for the largest account it has ever been offered. However, the account creates internal division because it is for a cigarette manufacturer. Key agency personnel may quit if the account is taken, yet other agency workers may not stay if the account is passed over.

The general manager of a financial services company is examining a request for a loan to finance the completion of a hotel on the ocean shore in Kenya. Projected costs and revenues for the first three years are presented. The manager is trying to assess the validity of these estimates and whether he should recommend the loan.

The case describes the problem facing the president and credit manager of Warner-Lambert with respect to financial position of a major distributor. The distributor's financial statements have just been received by the company and the situation is much worse than anticipated. The survival of the distributor is clearly threatened and Warner-Lambert must consider a new distribution network for the territory.

A manufacturer is considering mechanizing a highly labour-intensive system. He has received proposals with the related cost savings from two different manufacturers for different parts of the process. The president must analyze the information and determine whether the various proposals are financially feasible.

The treasurer of Nortex, a clothing manufacturer and retailer, has been asked to determine Nortex's cost of capital. This will be used in evaluating the merits of future capital expenditures. A follow-up case with the same name (product 9A87B015) is available.

One month's worth of purchases and sales at a restaurant supply company must be recorded, the ending balance in accounts receivable and accounts payable must be determined, and the revenue and cost of goods sold sections of an income statement must be prepared. This exercise is suitable for an introductory course in financial accounting.

Phil Brooks, a second year university student, was investigating the feasibility of starting an enterprise called the 'Beach Bus'. The Beach Bus would be a daily transit service carrying passengers from the cities of Trenton, Belleville, and Bayside, Ontario to Outlet Beach in Sandbanks Provincial Park. Brooks wanted to evaluate the overall feasibility of the idea.

Corey Manufacturing rebuilt its production equipment and thereby extended its useful life. How should Financial Accounting entries reflect extraordinary repair on a fixed asset?

Financial ratio analysis is used to evaluate the financial performance and condition of a business enterprise by measuring its progress towards financial goals. Its purpose is to provide information about the business entity for decision-making by both external and internal users. Terminology, definitions, and formulae (for vertical analyses, return on investment, investment utilization ratios, liquidity ratios, stability ratios, and growth ratios) are given in this technical note, and applied in a short exercise. This note would be suitable for a class in introductory finance.

This note discusses the mechanics of preparing a cash budget and the importance of optimizing a company's cash position. A detailed example of a cash budget is provided and examined.

The Noranda Board of Directors is considering four major capital budgeting proposals: development of a new mine, a mine shaft extension, purchase of an existing pulp and paper mill and purchase and installation of a continuous casting mill. A key issue is whether to use one overall cost of capital for the company or individual hurdle rates for each division.

President and CEO of Finning Tractor, has seen the earnings of the company drop below profitable levels because of a deep recession. Several restraint measures were instigated with little apparent impact. The case takes place at the point where a decision is impending on dividend policy with issues ranging from effect on stock price to the fact that the two majority shareholders may be adverse to taking a cut in the over $1.5 million in dividend income they were receiving annually.