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The case is based on a composite of issues facing many companies in balancing growth, profitability, and cash flow. In essence, it illustrates the concept of ''affordable growth'', the extent to which a company''s growth is limited by its ability to finance its growth through internally generated funds. The setting is an appliance distribution business facing shrinking margins, experiencing strong organic growth, performing well relative to comparable companies, but facing restraints on the amount of cash provided by the parent company. The case contains historical financial statements, performance ratios of comparable companies and sales projections for the next year. It was designed for students in graduate and advanced undergraduate courses in finance who may not have a strong accounting background, but who need to better appreciate the ''mystery'' of working capital, cash flow and profitability. The case may also be used as a mid-term examination.