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Questions for case: Off - Balance Sheet Financing at Big 5 Sporting Good Corporation 1 . What is Big 5 s business model? What are

Questions for case: Off-Balance Sheet Financing at Big 5 Sporting Good Corporation 1. What is Big 5s business model? What are the key success factors in the companys business? How will these be observable from the companys financial performance? 2. What is your assessment of Big 5s recent financial performance (profitability, asset management, leverage, liquidity) How does it compare to Dicks Sporting Goods, Inc? Is your assessment of Big 5s cash flow performance? How has it used cash flows generated from operations? 3. Why might the Big 5 sign a new credit agreement? Why didnt the company issue public bonds? What restrictions does the new credit agreement impose on the company? Why would the Big 5 agree to the restrictions? 4. Why would Big 5 lease some of its stores rather than buying them outright? What transactions did Big 5 record regarding capital lease in 20105. Why does the Big 5 have operating leases? Fully explain.

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