In the first option, they can expand by building a new manufacturing facility. ABC Custom Snowboards traditionally uses two separate single overhead rates to apply overhead to its two product lines: The unit product cost for the two product lines using traditional and ABC method of applying overhead is given in the excel workbook.
It has concluded that it can raise the capital through the issuance of long-term debt, sale of common stock, or a combination of both debt and common stock. European SnowFun has proposed to combine businesses with Custom Snowboards.
The major portion of the liabilities contains mortgage payable and other long-term liabilities, and these liabilities are being In the second option, then can merge with or acquire the operations of European SnowFun.
In the first part of this report, we will summarize the key financial points of Custom Snowboards Inc. The CEO is expecting your recommendation regarding which expansion option the company should pursue when you make the presentation. Financing the European Expansion: The company could pursue this expansion from a variety of different options.
The management of Custom Snowboards, Inc. In particular, he wonders about what affects an European expansion will have on the internal operations of the entity and how the company will react to external issues that any company expanding into Europe will encounter.
The relevant information for the two options is given below: By gauging liability trends, the bank makes sure it does not increase its own exposure to a single customer, a situation that banking specialists call being over-extended.
For example, if a bank already has significant outstanding loans with a customer, extending more credit may result in over-extending.
European SnowFun is currently operating in Europe and has heard about your expansion plans. The Excel workbook includes data calculations for all of the options in the expansion decision. Presentation for the CFO Regarding Bank Loan and Risk Mitigation When banks loan money, they must be conscious of the risk involved in lending that money to certain borrowers.
The CEO is concerned about the risks of expansion into Europe. Entering into a sale-leaseback. The following two alternatives are under consideration: If the potential borrower has a history of making late payments on loans or has defaulted on debt in the past, the bank is likely to see this person as a very risky borrower.
Custom Snowboards Inc Introduction The paper presents an analysis of the various financial aspects of evaluating an organization. A straight purchase over time. Total liabilities of the company are declining consistently, which mean the company is regularly paying its debts.
In case of Custom Snowboards Inc. One of the most important factors a bank will consider is the credit history of the potential borrower.
The percentage of the total sales from Europe has grown and the growth is expected to continue.FINANCIAL ANALYSIS PRESENTATIONS 2 Financial Analysis Presentations to CFO and CEO - Task 5 Henry R.
Luce (n.d) said, "Business, more than any other occupation, is a continual dealing with the future; it is a continual calculation, an instinctive exercise in foresight." In this task we will prepare Presentation A for the chief financial officer.
Custom Snowboards Inc. Managing Capital & Financial Assets 04/19/ WGU JET2 Financial Analysis Task 5, Part I - PASSED To: Vice President for Chief Financial Officer (CFO) The following is a summary report is an analysis of the current financial statements of Custom Snowboards Inc.
The company wishes to be considered for an extended. Transcript of Financial Analysis Task 5 The bank vice president will decide if the bank will approve a $1, funding request for the European expansion of Custom Snowboards Inc. currently under consideration. WGU Financial Analysis - JET 2 Task 5 - Custom Snowboards, INC View the Question Preview - Click download on the question page for the full document.
Custom Snowboards, Inc. Financial Analysis – Task 5 Slade Dietz Western Governors University Custom Snowboards, Inc. CFO Presentation Due to the growth of total sales and anticipated future growth of sales from Europe, Custom Snowboards, Inc. is considering expanding into the European market.
Custom Snowboards Inc. Managing Capital & Financial Assets 04/19/ WGU JET2 Financial Analysis Task 5, Part I - PASSED To: Vice President for Chief Financial Officer (CFO) The following is a summary report is an analysis of the current financial statements of Custom Snowboards Inc.Download