Putting It All Together: Creating a Short-Term Financial Plan 20. Construct a short-term financial plan for Springfield Snowboards based on its expan- sion 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 Q2-04. 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 (see MyFinanceLab for the data in Excel format). 201704 2018Q1 2018Q2 2018Q3 201804 4,545 -2,955 -455 1,136 -455 682 -239 443 5.000 3,250 1,000 750 -500 250 -88 162 6,000 6,000 6,000 -3,900 -3,900 -3,900 -600 -600 -600 1,500 1,500 1,500 -525 -525 -525 975 975 975 -341 -341 -341 634 634 634 162 500 634 525 634 525 634 525 1 Quarter 2 Income Statement (5000) 3 Sales 4 Cost of Goods Sold 5 Selling. General, and Administrative 6 EBITDA 7 Depreciation 8 EBIT 9 Taxes 10 Net Income 11 Statement of Cash Flows 12 Net Income 13 Depreciation 14 Changes in Working Capital 15 Accounts Receivable 16 Inventory 17 Accounts Payable 18 Cash from Operating Activities 19 Capital Expenditures 20 Other Investment 21 Cash from Investing Activities 22 Net Borrowing 23 Dividends 24 Capital Contributions 25 Cash from Financing Activities 26 Change in Cash and Equivalents (18+ 21 + 25) -136 -300 48 574 1,500 105 964 -525 1.159 -525 1.159 -525 1,500 -525 -525 -525 -926 439 634 634 Putting It All Together: Creating a Short-Term Financial Plan 20. Construct a short-term financial plan for Springfield Snowboards based on its expan- sion 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 Q2-04. 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 (see MyFinanceLab for the data in Excel format). 201704 2018Q1 2018Q2 2018Q3 201804 4,545 -2,955 -455 1,136 -455 682 -239 443 5.000 3,250 1,000 750 -500 250 -88 162 6,000 6,000 6,000 -3,900 -3,900 -3,900 -600 -600 -600 1,500 1,500 1,500 -525 -525 -525 975 975 975 -341 -341 -341 634 634 634 162 500 634 525 634 525 634 525 1 Quarter 2 Income Statement (5000) 3 Sales 4 Cost of Goods Sold 5 Selling. General, and Administrative 6 EBITDA 7 Depreciation 8 EBIT 9 Taxes 10 Net Income 11 Statement of Cash Flows 12 Net Income 13 Depreciation 14 Changes in Working Capital 15 Accounts Receivable 16 Inventory 17 Accounts Payable 18 Cash from Operating Activities 19 Capital Expenditures 20 Other Investment 21 Cash from Investing Activities 22 Net Borrowing 23 Dividends 24 Capital Contributions 25 Cash from Financing Activities 26 Change in Cash and Equivalents (18+ 21 + 25) -136 -300 48 574 1,500 105 964 -525 1.159 -525 1.159 -525 1,500 -525 -525 -525 -926 439 634 634
