Q. 1. Explain the situation facing Lockwood at the time of the case. This should comprise the major issues facing the company and the decisions that need to be made. You are to spend no time on corporate history. You must consider the past but your analysis and recommendations should be forward looking.

2. List your specific recommendations for the firm in detail. Explain why each recommendation was made including the information used and the logic (or analysis) applied to reach your conclusion. As you prepare your analysis, remember that no decision is complete until the financial impact of the decisions is find out.

3. If your recommendation(s) need to be taken in a particular sequence, be sure to indicate the proper sequence and the reasons for that sequence.

4. Examine the events or uncertainties that are most likely to cause trouble in the implementation of your recommendations and explain how you would react to them if they were to occur.