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CASE: Jackson Automotive Systems 1. Whycan'tprofitablecompanylikeJacksonrepayitsloanontime?Whatmajor companydevelopmentsbetweenAugust2012andMay2013contributetothis situation?PrepareasourcesandusesoffundsstatementforAug2012throughMay 2013. 2. Whydoesthecompanyneedanewloan?Howurgentistheneedfortheadditional borrowing? 3. Preparemonthlycashbudgetandproformaincomestatementsandbalancesheets forthelastfourmonthsofthefiscalyear. 4. BasedonyourforecastsandanalysisofJackson'scredit,isthecompanyabletorepay itsloanattheendofthefiscalyear?Whataretheriskassociatedwiththeproposed loan? 5. Criticallyevaluatetheassumptionsonwhichyourforecastsarebasedandperform sensitivityanalysisonthefiscalyearendcashbalancewhensalesforecastsvaryfrom expectations. 6. Shouldthebankextendthematurityofthecurrentloanandapprovetheadditional

CASE: Jackson Automotive Systems

1. Whycan'tprofitablecompanylikeJacksonrepayitsloanontime?Whatmajor companydevelopmentsbetweenAugust2012andMay2013contributetothis situation?PrepareasourcesandusesoffundsstatementforAug2012throughMay 2013.

2. Whydoesthecompanyneedanewloan?Howurgentistheneedfortheadditional borrowing?

3. Preparemonthlycashbudgetandproformaincomestatementsandbalancesheets forthelastfourmonthsofthefiscalyear.

4. BasedonyourforecastsandanalysisofJackson'scredit,isthecompanyabletorepay itsloanattheendofthefiscalyear?Whataretheriskassociatedwiththeproposed loan?

5. Criticallyevaluatetheassumptionsonwhichyourforecastsarebasedandperform sensitivityanalysisonthefiscalyearendcashbalancewhensalesforecastsvaryfrom expectations.

6. Shouldthebankextendthematurityofthecurrentloanandapprovetheadditional loan?Whattermsandconditionsshouldthebankimposetoreducetherisksofthe loantothebank?

7. Whydidthecompanyrepurchaseasubstantialfractionofitsoutstandingcommon stocks?What'stheimpactoftherepurchaseonJackson'sfinancialcondition?

8. Criticallyassessthecompany'sproposeddividendpayoutinSeptember2013.Should thebankagreewiththepayout?Whatseemstobeanappropriateamount?

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