Please find below the three questions for the Darlarna Furniture case:

$1)$ The Bank of Montreal placed a number of restrictions and covenants on its proposed financing package, including the need to maintain a minimum current ratio of $2\mathrm{.}0,$ cash flow overage ratio of $4\mathrm{.}0$ and l$/$t debt to total capitalization max of $55\%.$ How do Darlarna$$s key liquidity and profitability ratios compare to these minimum thresholds, as well as to the industry averages?

$2)$ What would the $3-$year forecasted financial statements of Darlarna look like. Include a description of your key assumptions for revenue and expenses.

$3)$ Despite Frederik Blix$$s knowledge and experience in furniture design and manufacturing, as well as his passion for bringing furniture with a $$Swedish influence$$ to the world, the challenges Blix faces in the Fall of $2008$ are numerous, including rising raw materials costs, shortages of skilled labor, increased competition from Chinese manufacturers and the threat of looming recession in the U$.$S$.$ What would be your recommendation and action plan for Darlarna? Should Blix accept the proposed financing offered by the Bank of Montreal and$/$or pursue expansion in the U$.$S market or focus energies on other initiatives?