After Martha's telephone call, and the subsequent receipt of copy of the bank's financial analysis of Garden State, Jim began to realize just how precarious his company's financial position had become. As he started to reflect on what could be done to correct the problems, it suddenly to reflect on what cold be done to correct the problems, it the bank imagined. Jim had recently signed a firm contract for a plant expansion that would require an additional $12,750,000 of capital during the first quarter of 2007 as a result of the expansion. In his view, once the new production facility went on line, the company would be able to increase output in several segments of the shipping container market. It might have been possible to cut back on the expansion plans and to retrench, but because of the signed contruction contracts and the cancellation charges that would be imposed if the plans were canceled, Jim correctly reaards the $12,750,000 of new capital as being essential for Gargen State's very survival.