He worked hard to provide Brand X's lending institution with accurate interim financial statements, reasonable pro forma financial statements, and complete borrowing base certificates so that debt covenants were met and short-term borrowing needs could be planned and modified on a regular basis.
This exceeded Brand X's typical margin on domestically sourced sales by nearly 10%.
With progress being made and his optimism high, Karl was naturally dumbfounded when he opened a letter addressed to Brand X Company from the USDC.
Jay knew the costs associated with the tariff would place Brand X in violation of several debt covenants and severely restrict the company's cash flow well into the future.
He asked Shenyang Furniture to ship the remaining furniture unassembled and labeled as "wood parts" rather than "TV stand," "dresser," "headboard," "nightstand," or "end table." Karl believed his tactic would disguise the shipment as wood instead of furniture, enabling Brand X to avoid the tariff because it wouldn't be importing wooden bedroom furniture.
Jay's presence at the audit seemed appropriate given his position as corporate controller of Brand X. But Karl delegated responsibilities of the audit to Bob.
Jay had access to the data and information for the prototype headboard that Brand X manufactured during the contract negotiation, including engineered drawings and the costs of raw material, labor, and overhead.
As we have already seen, brand X's attitudes vary across the full length of the spectrum depending on whether people are users or not.
Brand X has a problem: it is losing many of its occasional users to brand Y.
The advertising for brand X had always been rather "narcissistic," showing just beautiful young women and admiring men--but never their families.