In this task you will prepare a report for the chief financial officer (CFO) to present to a bank vice president
who may consider extending a long-term loan to Custom Snowboards, Inc. The CFO has requested that you analyze the financial statements to arrive at a selection of key financial statement line items, a risk assessment and ratios that the banker may use to assess and, if the loan is granted, track the progress of the company’s ability to repay the loan.
You will prepare another report to present directly to the chief executive officer (CEO) of Custom Snowboards Inc. and the board of directors. The report will include a recent history of the company and a recommendation on how to proceed with the expansion plans.
Be sure to enter your first initial and last name on the first worksheet in Custom Snowboards, Inc. Financial Data excel document.
Task:
Note: Be sure to submit a copy of your Excel workbook when submitting your JET2 Task 5 work. When you enter your first initial and last name at the top of the Income Statement you are given a dataset that is based on your name. The evaluator will need a copy of your data to ensure correct evaluation.
A. Create a report for the chief financial officer in which you do the following:
1. Summarize the key points of the company’s financial picture that could impact the bank officer’s decision.
Note: A variety of analyses that will provide a solid understanding of the highlights of the financial statements should be included.
2. Explain how any financial risks pointed out by the bank loan officer could be mitigated by the company.
3. Analyze the ratios that will indicate the ability to repay the principal and interest on the 5-year loan.
B. Create a report with your recommendations on the European expansion of Custom Snowboards Inc. for the chief executive officer (CEO) by doing the following:
1. Present a historical analysis of past performance.
a. Analyze what the historical analysis indicates about future performance.
2. Discuss how the current operations can be improved through better cost controls.
Note: Multiple cost controls should be discussed to address how operations can be improved.
3. Discuss both the internal risks and external risks that Custom Snowboards, Inc. will face with any expansion alternative into the European market.
a. Recommend strategies and techniques that can be used to mitigate those risks.
4. Discuss the potential returns of procuring a new plant in Europe that must be presented to and considered by the CEO and company board in your report.
Note: The discussion should include a logical interpretation of the NPV and IRR results.
5. Custom Snowboards, Inc. has the opportunity to enter the European market by procuring a new production plant, merging with European SnowFun, Inc.
via a stock swap, or acquiring European SnowFun, Inc. outright
via a stock purchase. After analyzing the data provided select the best option for expanding operations into Europe.
6. Based on the option selected in #5 above present a final financing recommendation to the CEO.
C. When you use sources, include all in-text citations and references in APA format.
Note: When bulleted points are present in the task prompt, the level of detail or support called for in the rubric refers to those bulleted points.
Note: For definitions of terms commonly used in the rubric, see the Rubric Terms web link included in the Evaluation Procedures section.
Note: When using sources to support ideas and elements in a paper or project, the submission MUST include APA formatted in-text citations with a corresponding reference list for any direct quotes or paraphrasing. It is not necessary to list sources that were consulted if they have not been quoted or paraphrased in the text of the paper or project.
Note: No more than a combined total of 30% of a submission can be directly quoted or closely paraphrased from sources, even if cited correctly. For tips on using APA style, please refer to the APA Handout web link included in the General Instructions section.
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