story line.pdfExcel workbook.xls
In this task you will prepare a report for the chief financial officer (CFO) to
present to a bank vice presidentwho 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.
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
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
3. Analyze the ratios
that will indicate the ability to repay the principal and interest on the
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.
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
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
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.