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Construct a short-term financial plan for Springfield Snowboards based on its expansion opportunity described in the "Positive Cash Flow Shocks part of Section 20.1. Base the plan on the following table, which forecasts additional capital expenditures, marketing (SG&A), and working capital in Q1 and Q2 along with higher sales in Q2 to Q4. Assume that Springfield ends 2017 with $1 million in cash and that its bank will offer it a short-term loan at the rate 2.5% per quarter. Assume that the minimum cash balance to be maintained is $500,000. (Note that $500,000 is 500 in the tables, where all figures are in thousands of dollars.) 600 Quarter 201704 201801 2018Q2 201803 201804 Income Statement (5000) Sales 4545 5.000 6,000 6,000 6,000 - Cost of Goods Sold 2,955 3,250 3,900 3,900 3.900 - Selling Gen, and Admin. 455 1,000 600 600 EBITDA 1.135 750 1,500 1,500 1,500 - Depreciation 455 500 525 525 525 EBIT 680 250 975 975 975 Taxes 239 88 341 341 341 Net Income 441 162 634 634 634 Statement of Cash Flow Net Income 441 162 634 634 634 0 Depreciation 500 525 525 525 (Excel table download) Changes in Working Capital: Accounts Receivable -136 -300 0 Inventory 48 Accounts Payable os 0 0 Cash from Operating Act. 574 964 1,159 1.159 -1,500 -525 -525 Capital Expenditures 0 0 0 0 Other Investments Cash from Investing Act. -1,500 -525 -525 0 0 0 Net Borrowing 0 0 - Dividends 0 0 0 Capital Contributions 0 0 0 Cash from Financing Act. -926 439 634 Change in Cash Equlv. O JOOO Complete the cash budget based on the assumptions of the problem. (Round to the nearest integer) Answer: W LIVE-GO Legg Study Cheg... in LinkedIn Candidate Porta NEX t volle Answer: 201801 2018Q2 201803 201804 500 500 500 500 Cash Balance and Short- 201704 Term Financing ($000) Starting Cash Balance Change in Cash and Equivalents Minimum Cash Balance Surplus (Deficit) Relative to Minimum Existing Short-term Financing Increase (Decrease) In Short- Term Financing Total Short-term Isur (sur (sur (sur arvas Home RNMKRS Netflix My Drive - Google. C Chegg Study Cheg. in Linkedin Candidate Portal NEX volleymetrics XCEL Increase (Decrease) in Short- Term Financing Total Short-term Financing Ending Cash Balance 1000 Answer: The correct statement from the following is (answer "A"B" "Cor "D") A. They will need to borrow $426,000 for the first quarter of 2018, and they will pay back the loan during 04 of 2018 B. They will need to borrow $426,000 for the second quarter of 2018, and they will pay back the loan during Q3 of 2018 C. They will need to borrow $426,000 for the first quarter of 2018, and they will pay back the loan during Q2 of 2018 D. They will need to borrow $426,000 for the third quarter of 2018, and they will pay back the loan during 24 of 2018 Submit Quiz No new data to save. Last checked at 9:20am arvas Home RNMKRS Netflix My Drive - Google. C Chegg Study Cheg. in Linkedin Candidate Portal NEX volleymetrics XCEL Increase (Decrease) in Short- Term Financing Total Short-term Financing Ending Cash Balance 1000 Answer: The correct statement from the following is (answer "A"B" "Cor "D") A. They will need to borrow $426,000 for the first quarter of 2018, and they will pay back the loan during 04 of 2018 B. They will need to borrow $426,000 for the second quarter of 2018, and they will pay back the loan during Q3 of 2018 C. They will need to borrow $426,000 for the first quarter of 2018, and they will pay back the loan during Q2 of 2018 D. They will need to borrow $426,000 for the third quarter of 2018, and they will pay back the loan during 24 of 2018 Submit Quiz No new data to save. Last checked at 9:20am

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