Question: Start with the partial model in the file attached. Marvel Pence, CEO of Marvels Renovations, a custom building and repair company, is preparing documentation for

Start with the partial model in the file attached. Marvel Pence, CEO of Marvels Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2020 and 2021:

Sales Labor and Raw Materials

May, 2020 $75,000 $80,000

June, 2020 $115,000 $75,000

July, 2020 $145,000 $105,000

August, 2020 $125,000 $85,000

September, 2020 $120,000 $65,000

October, 2020 $95,000 $70,000

November, 2020 $75,000 $30,000

December, 2020 $55,000 $35,000

January, 2021 $45,000 N/A

c. If its customers began to pay late, this would slow down collections and thus increase the required loan amount. Also, if sales dropped off, this would have an effect on the required loan amount. Perform a sensitivity analysis that shows the effects of these two factors on the maximum loan requirement.

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