West Point Supply, Inc.~ It is the second week of January 2018. The Chief Executive Officer (CEO) of West Point Supply, Inc. (WPS), Mr. Donnie Glover, is preparing for a meeting with the company's bank, Welles Forgo Bank & Trust (Welles Forgo). To prepare for the meeting, Mr. Glover is reviewing the company's 2017 financial statements. He is working with the knowledge that 2017 was a very good year for WPS both in sales and in profits, and he is hopeful the company's bank will recognize this achievement. Such an outcome is important because in early 2017 WPS had arranged a term loan, for the first time ever, and its initial repayment installment of $40,000 is due in February 1, 2018. Mr. Glover hopes that the company's strong results during 2017 will impress Ms. Carrie Lowe, the bank's loan officer. He is confident that the approaching loan payment is within WPS's financial capacity following its best year ever. He expects to send Ms. Lowe the company's 2017 financial statements soon so that she can review them before the due date of the loan. The Company WPS was organized by Mr. Glover in 2001 as a wholesaler of electrical supplies and equipment to building contractors in and around Pittsburgh, PA. After a contraction during the recession of 2007-2009 its sales had grown through the following 10 years. The company has built a reputation for rapid delivery on a wide array of materials required by builders, many of whom are not well-capitalized and cannot finance an extensive inventory themselves. Mr. Glover believes WPS's competitive advantage depends on this reputation. An implication of this strategy is that WPS must carry substantial inventory. As a result, through time, the company had to rent warehouse space in growing capacity. To stock its inventory WPS purchases supplies from an array of dealers. WPS's suppliers sell to WPS on credit terms of 2/15, net 30 days. All of WPS's purchases are on credit. In turn, the company sells to builders on credit terms of net 30 days and all sales are credit sales. ~ During the latter part of 2016, a decision was made to construct a new warehouse adjacent to the company's main offices and existing storerooms. The new building meant that WPS no longer needed to rent warehouse space - - which represents a saving for the company.The Loan