Chapter 11: Carton Industries Company
Gitman, Lawrence J., and Edward A. Moses, eds., Financial Management: Cases, pp. 104-107. St. Paul, MN: West Publishing Company, 1978
Posted: 28 Apr 2015 Last revised: 7 Nov 2016
Date Written: May 14, 2015
Abstract
The collection of 47 cases present real business decision situations that can be used to bridge the gap between an understanding of the theories, concepts, tools, and techniques of financial management and an ability to use such knowledge to solve problems and/or make decisions related to the financial management of the business firm.
Case: Carton Industries Company: In early 1961, Robert Moore, a loan officer of the Illinois National Bank of Chicago, was reviewing a loan request from Carton Industries Company of Clearwater, Wisconsin. Carton Industries had just the Dairy Crate Company, a Chicago company that had been a non-borrowing customer since 1949. It was at the request of the former owners of Dairy Crate that Illinois National was reviewing the loan application. Carton Industries desired a loan of $280,000 to finance the working capital needs of the combined companies.
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