Short Case Study: Cash Flows and Credit Risk XYZ Company has a $ 1 million bank loan due next year. The following forecasts have been shared with the bank officer responsible for overseeing the company loan: Q1 Q2 Q3 Q4 Q5 Q6 Scheduled loan payments $500,000 $500,000 Forecasted cash flows: Cash from operations $200,000 $250,000 $300,000 $240,000 $200,000 $200,000 Capital expenditures ($150,000) ($150,000) ($751,000) Dividends to owners ($50,000) Required: 1. Explain why the loan officer might consider the company loan to be of high credit risk 2. What steps can company management take to reduce the loan's credit risk? 3. What steps can the bank loan officer take to reduce the loan's credit risk