Harvard Business Publishing Chemlite B Case $1.$ Prepare the pro forma $2005$ Statement of Cash Flows using the indirect method.

$2.$ Isolate the cash flows from debt and other liabilities. What would Chemalite's cash position at $12/31/2005$ be without those liabilities?

$3.$ Prepare a monthly timeline of cash inflows and outflows. WHEN during the year does Chemalite need debt financing? How much debt should they take out in each month $($you should probably build in a cushion because these are just estimates$).$ I provided assumptions in class. You may need to make more timing assumptions. If so$,$ please state your assumptions.

$4.$ What are Chemalite's main sources and uses of cash?

$5.$ What would you recommend regarding Chemalite's cash position? Do they need the debt they've incurred? How long $($in days$)$ can Chemalite operate in $2006$ without raising more cash? What are some approaches Chemalite could take to improve their cash position? $($Hint: consider things like dividend policy, short$-$term liabilities $[$No AP$?],$ customer credit policies, additional borrowings, additional equity $[$treasury stock...$],$ changes in operations, inventory management, etc.$)$