Directions: Click the "Case-link" displayed above and use the information provided in Light Touch, Part A, to answer this question: Which of the following factors would be the most important to include to develop three-to-five-year future scenarios for Light Touch Predicted new and used car sales Light Touch Part A O Medium-term weather outlook Company Information O Growth outlook for the carwash industry O Medium-term outlook for changes in automotive design Twenty-three years ago, chemical engineer Mike Cavallon developed a plastic material that behaved like leather but felt like peach frizz. Recognizing that such a material could be valuable in cleaning applications, he continued his research until he could produce an effective, non-abrasive cleaner that was durable enough to meet industrial requirements. He organized a company and named it after his product, Light Touch, and for several years he manufactured cleaning cloths and sold them to a variety of businesses in his geographic area. It then occurred to Mike that Light Touch would be an ideal product for drive-through car-wash operations. He designed "brushes with many long strips of Light Touch, which as he described them, "caressed the car instead of brushing it." getting it clean without scratching. Car-wash owners were quick to recognize the benefits of Light Touch, and in a few years, nearly all of them were using it in their operations. Light Touch's sales are heaviest in the spring and summer months, and its seasonal low point occurs in January and February when freezing temperatures make washing cars much less practical . Recently, Mike has successfully marketed Light Touch "brushes" to car washes over a much broader geographical market - including some with much warmer winters. Not surprisingly, this is evening out the seasonality of his sales. Today is April 1, 20Y4. You have just been assigned the Light Touch account relationship for you bank Light Touch has been a bank customer since its inception. The bank has provided fixed-asset financing on numerous occasions most recently in 2040, when the company refinanced $2 million of existing term debt and borrowed $2 million in new money for its expansion into car-wash brushes. Your bank also made available to the company what has now grown to a $2 million line of credit facility. As a condition of extending this line, the bank has required that Light Touch be out of debt for 60 consecutive days during the first quarter of every year (the clean-up period). Until last year, the company was able to meet the clean-up requirement easily every year. At the end of January 2014, however, the company was unable to clean up the line. In fact, at the end of February, the outstanding balance was $602,000. The company was unable to reduce the line significantly below $600,000 at any time during the entire first quarter. Your predecessor on the account waived the clean-up requirement on the basis of his strong confidence in the company's management and the company's excellent conduct of its account with the bank over the years. The balance on the line of credit as of March 30 was $918,000. The credit file contains notes made by the former account manager that describe management's expectation of contiming growth, especially in the Car Wash division, on the order of 20 percent in 2014. Light Touch has requested a $1 million increase in the line of credit facility. Directions: Click the "Case-link" displayed above and use the information provided in Light Touch, Part A, to answer this question: Which of the following factors would be the most important to include to develop three-to-five-year future scenarios for Light Touch Predicted new and used car sales Light Touch Part A O Medium-term weather outlook Company Information O Growth outlook for the carwash industry O Medium-term outlook for changes in automotive design Twenty-three years ago, chemical engineer Mike Cavallon developed a plastic material that behaved like leather but felt like peach frizz. Recognizing that such a material could be valuable in cleaning applications, he continued his research until he could produce an effective, non-abrasive cleaner that was durable enough to meet industrial requirements. He organized a company and named it after his product, Light Touch, and for several years he manufactured cleaning cloths and sold them to a variety of businesses in his geographic area. It then occurred to Mike that Light Touch would be an ideal product for drive-through car-wash operations. He designed "brushes with many long strips of Light Touch, which as he described them, "caressed the car instead of brushing it." getting it clean without scratching. Car-wash owners were quick to recognize the benefits of Light Touch, and in a few years, nearly all of them were using it in their operations. Light Touch's sales are heaviest in the spring and summer months, and its seasonal low point occurs in January and February when freezing temperatures make washing cars much less practical . Recently, Mike has successfully marketed Light Touch "brushes" to car washes over a much broader geographical market - including some with much warmer winters. Not surprisingly, this is evening out the seasonality of his sales. Today is April 1, 20Y4. You have just been assigned the Light Touch account relationship for you bank Light Touch has been a bank customer since its inception. The bank has provided fixed-asset financing on numerous occasions most recently in 2040, when the company refinanced $2 million of existing term debt and borrowed $2 million in new money for its expansion into car-wash brushes. Your bank also made available to the company what has now grown to a $2 million line of credit facility. As a condition of extending this line, the bank has required that Light Touch be out of debt for 60 consecutive days during the first quarter of every year (the clean-up period). Until last year, the company was able to meet the clean-up requirement easily every year. At the end of January 2014, however, the company was unable to clean up the line. In fact, at the end of February, the outstanding balance was $602,000. The company was unable to reduce the line significantly below $600,000 at any time during the entire first quarter. Your predecessor on the account waived the clean-up requirement on the basis of his strong confidence in the company's management and the company's excellent conduct of its account with the bank over the years. The balance on the line of credit as of March 30 was $918,000. The credit file contains notes made by the former account manager that describe management's expectation of contiming growth, especially in the Car Wash division, on the order of 20 percent in 2014. Light Touch has requested a $1 million increase in the line of credit facility