Scenario: Congratulations on your recent promotion to Senior Advisory Consultant at the prestigious consulting firm, A-1 Financial Consultants Inc. As a Senior Advisory Consultant, you have been assigned to review the financial policies for GoGrow Inc. and make business recommendations to the CFO. Company: GoGrow Inc. is a US based company, who manufactures specialty electronics products for cellular telephones. The firm manufactures products in their world-class manufacturing facility located in Dubuque Iowa, while its corporate headquarters are located in New York. The firms customers are global. Revenue is generated from US, Europe, and Japanese-based corporate customers. Consultant Review: Evaluate the company balance sheet, income statement, and cash flow statement. How does the companies short-term financial ratios compare to the industry averages? How would you recommend the firm modify their current working capital policies to better align with the industry? Based upon the two-year period, how is the firms liquidity? The finance department is located in NYC, and is comprised of the CFO, and three staff members. One staff member is responsible for the firms bills (payables), another employee handles receipts (receivables), and the third employee is responsible for investing / borrowing short term cash as part of its daily business operations. Staff are skilled in their job responsibilities but are disappointed with the number of manual processes required to complete their daily work. The firms primary bank is New York Regional Bank (NYRB). NYRB is exclusively a US retail bank, with limited international banking expertise. The bank provides basic cash management functions for its US based customers. The bank currently provides a $15m credit facility to GoGrow Inc., however this arrangement is currently under bank review, and may be discontinued at the end of 2022. The CFO would consider upgrading the firms cash management technology but would like a recommendation from A-1 Financial Consultants Inc. as to the pros and cons of upgrading to a state-of-the-art Treasury Management System. Based upon your answers from 1. above, what type of cash management / bank products should the firm consider? Next year, the firm is planning on expanding its manufacturing facility in Dubuque and will need to fund the construction of the plant. The firm will need $63 million initially during the construction phase, and an additional $27 million in 2023 to complete the facility upgrade. Incremental revenue from the plant expansion will not occur until 2024. The treasurer has asked for A-1 Financial Consultants Inc. to recommend how best to finance this project? (In the response, students need to consider todays current economic conditions, i.e., US monetary policy, inflation) The firm does not hedge their foreign exchange risk. Future revenues are expected to increase disproportionately in Europe over the next three years. What are the advantages or disadvantages of implementing an FX hedging policy? Would NYRB be able to assist the firm to implement an FX hedging program? The attached spreadsheet contains the firms financials and forecast revenue for the next three years. Forecast revenue is further segregated by geographic region, US, Europe, and Asia, Students should use the spreadsheet for analysis and review. Industry statistics are provided in the spreadsheet. Students are encouraged to compare GoGrow Inc. statistics to the industry to answer the four topics. Student Submission: Please submit a one-page memorandum addressed to the CFO of GoGrow Inc. covering the four (4) review topics listed above (Topic #4 will be covered in Module 7).