Study of Hard Times Turn Around a Toy Company

INTRODUCTION

Slick Micks Toys Inc, is the manufacturer of a type of action figure moderately popular with kids between the ages of 3 and 8 years. Slick Micks not so slick accountants all have kids that love the figurines but have nonetheless identified that unless there is a swift improvement in cash flow, the business might not make it to the next season.

You have been asked to help the team forecast cash flow for the coming three years with particular focus on the next twelve months. Use the following information to draft a three year monthly cash flow forecast with the first month being October 2013 and use it to answer the following key questions. The key assumptions are provided in the Excel file that accompanies this question and are also set out below.

Based on the data provided from the Hard Times for a Toy Company provided by ModelOff and used on the Week 5 Assignment You have been asked to help the team forecast cash flow for the coming three years with particular focus on the next twelve months . Use the following information to draft a three year monthly cash flow forecast with the first month being October 2013 and use it to answer the following key questions . The key assumptions are provided in the Excel file that accompanies this question and are also set out below .

Questions :

Q1 : What is the forecast Sales Revenue in January 2014 ?

Q2 : What is the forecast closing accounts payable in December 2015 ?

Q3 : What is the total Indirect Costs expected for the three years forecast ?

Q4 : What is the total interest expense for Calendar Year 2014 ?

Additional Requirements :

1 . Create income statement projection for the outlined period

2 . Create statement of cash flows projection for the outlined period

3 . Create balance sheet projection for the outlined period

KEY ASSUMPTIONS

Complete the calculations as indicated in the document entitled Required Calculations. These calculations should be done on the spreadsheet template provided in the appropriate section or on a clearly labeled tab within the spreadsheet.

Using the calculated data, create a pro forma cash flow statement, income statement and balance sheet.

HINT: If information is not supplied or calculable based on the data provided, do not include it in your model.