Professional Documents
Culture Documents
Distillery, Inc., of Oakwoods, Tennessee, sat in his office pondering the results of
the previous day's meeting of the board of directors and wondering whether he
should submit the 1988 financial statements to the Ridgeview National Bank of
Nashville, Tennessee in support of a recent loan request for $3 million, or
whether he should wait until after next month's board meeting to clarify some of
the preceding day's discussion. A great deal of controversy had arisen over the
1988 reported loss of $814,000 and how this result should be reported to the
bank. The controversy revolved principally around the accounting treatment of
various expenses reported in the "other costs" section of the operating
statement. Mr. Dobbins knew that a decision had to be reached on these matters
quickly, because the company had reached a point where additional working
capital was needed immediately if it was to remain solvent.
Company History
Founded in 1880 in Oakwoods by Daniel Dobbins.
Major product – Old Trailridge Bourbon Whisky
High quality of whisky due to the unusual iron-free spring water used in
the distillation process and the specially prepared fire-charred white oak
barrels used in the aging process.
David Dobbins takes over in 1973
Constant demand over the years
High demand surge forecasted due to maturity of Baby boom generation
Manufacturing Process
Ingredients controlled by laws.
Barrels can be used only once
Barrels are made through a patented process
Whisky has to mature for at least 4 years after the process.
Stored in 50 gallon barrels for mellowing in warehouse