0 View an Example Question Help Construct a short-term financial plan for Springfield Snowboards based on its expansion opportunity described in the "Positive Cash Flow Shocks" part of Section 20.1. Base the plan on the following table 3 and working capital in Q1 and 02 along with higher sales in Q2 04. Assume that Springfield ends 2014 with $1,06 million in cash and that its bank will offer it a short-term loan at the rate 2 25% per quarter. Assume that the minimum cash balance to be maintained is $490,000 Below is a cash budget based on the assumptions of the problem. The "Total Short-term Financing' is the line that shows the borrowings needed by quarter. Cash Balance and Short-Term Financing (5000) 2012Q4 201302 Data Table 2013Q1 1.060 $ -900 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 -330 6 Starting Cash Balance Change in Cash and Equivalents Minimum Cash Balance Surplus (Deficit) Relative to Minimum Increase (Decrease) in Short-Term Financing Existing Short-term Financing Total Short-term Financing Ending Cash Balance 4,547 2,956 452 1.139 5,125 3,331 950 844 551 293 103 6,145 3.994 650 1,501 6,130 3.965 650 1,569 458 551 ,055 3.936 550 1,569 500 1.069 374 695 0 330 490 $ 550 0 615 $ 1.060 $ 681 238 950 333 617 1,019 357 662 443 190 Cash Balance and Short-Term Financing (5000) 617 551 2013Q3 615 S 679 Quarter Income Statement ($000) Sales Cost of Goods Sold Selling.Gen., and Admin. EBITDA Depreciation EBIT Taxes Net Income Statement of Cash Flow ($000) Net Income Depreciation Changes in Working Capital: Accounts Receivable Inventory Accounts Payable Cash from Operating Act. Capital Expenditures Other Investments Cash from Investing Act. Net Borrowing Dividends Capital Contributions Cash from Financing Act. Change in Cash Equiv. 695 500 0 - 144 - 297 20134 1.294 678 490 1,482 Starting Cash Balance Change in Cash and Equivalents Minimum Cash Balance Surplus (Deficit) Relative to Minimum Increase (Decrease) in Short-Term Financing Existing Short-term Financing Total Short-term Financing 56 653 - 1,553 112 983 -521 1,195 -516 1.212 534 - 1,553 -521 -516 534 Ending Cash Balance 1,294 S 1,972 - 900 0 4 62 0 679 678 They will need to borrow $330,000 for the first quarter of 2013, and they will pay back the loan during Q2 of 2013. Question is complete. Print Done All parts showing Close 0 View an Example Question Help Construct a short-term financial plan for Springfield Snowboards based on its expansion opportunity described in the "Positive Cash Flow Shocks" part of Section 20.1. Base the plan on the following table 3 and working capital in Q1 and 02 along with higher sales in Q2 04. Assume that Springfield ends 2014 with $1,06 million in cash and that its bank will offer it a short-term loan at the rate 2 25% per quarter. Assume that the minimum cash balance to be maintained is $490,000 Below is a cash budget based on the assumptions of the problem. The "Total Short-term Financing' is the line that shows the borrowings needed by quarter. Cash Balance and Short-Term Financing (5000) 2012Q4 201302 Data Table 2013Q1 1.060 $ -900 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 -330 6 Starting Cash Balance Change in Cash and Equivalents Minimum Cash Balance Surplus (Deficit) Relative to Minimum Increase (Decrease) in Short-Term Financing Existing Short-term Financing Total Short-term Financing Ending Cash Balance 4,547 2,956 452 1.139 5,125 3,331 950 844 551 293 103 6,145 3.994 650 1,501 6,130 3.965 650 1,569 458 551 ,055 3.936 550 1,569 500 1.069 374 695 0 330 490 $ 550 0 615 $ 1.060 $ 681 238 950 333 617 1,019 357 662 443 190 Cash Balance and Short-Term Financing (5000) 617 551 2013Q3 615 S 679 Quarter Income Statement ($000) Sales Cost of Goods Sold Selling.Gen., and Admin. EBITDA Depreciation EBIT Taxes Net Income Statement of Cash Flow ($000) Net Income Depreciation Changes in Working Capital: Accounts Receivable Inventory Accounts Payable Cash from Operating Act. Capital Expenditures Other Investments Cash from Investing Act. Net Borrowing Dividends Capital Contributions Cash from Financing Act. Change in Cash Equiv. 695 500 0 - 144 - 297 20134 1.294 678 490 1,482 Starting Cash Balance Change in Cash and Equivalents Minimum Cash Balance Surplus (Deficit) Relative to Minimum Increase (Decrease) in Short-Term Financing Existing Short-term Financing Total Short-term Financing 56 653 - 1,553 112 983 -521 1,195 -516 1.212 534 - 1,553 -521 -516 534 Ending Cash Balance 1,294 S 1,972 - 900 0 4 62 0 679 678 They will need to borrow $330,000 for the first quarter of 2013, and they will pay back the loan during Q2 of 2013. Question is complete. Print Done All parts showing Close