week #1 Case Study-Panera Bread Company Case Study Questions: 1. Complete the financing portion of Panera Bread Company's 2007 forecast financial statements a. Include a chart of your financial assumptions. 2. Develop a 5 year Financial Forecast (both Balance Sheet and Income Statement) Describe three possible financial forecasting processes. Discuss the benefits and limitations of each three methods. Describe why you chose the approach you used in this case study 3. 4. Provide an assessment of the earning quality of Panera Bread in Year 5 of the projected financial 5. Determine the amount of Free Cash Flow Panera has in Year 5 of the projected financial 6. Develop a table of relevant financial ratios for 2007 and Forecast Year 5; discuss the ratios, their 7. Given the need for external sources of capital, compare and contrast the advantages and statements statements. Discuss the importance of Free Cash Flow, and it's relationship to overall accounting earnings change of the forecast period, and the overall performance of Panera Bread in Forecast Year5. disadvantages of external equity, a long-term note payable, and a short-term line of credit. Case Study Assumptions: A 5-year financial forecast worksheet has been provided to you on Blackboard. Assume all borrowing are a type of debt, no additional equity will be utilized to raise capital The share repurchase program DOES occur in 2008, and interest expense is equal to 6% of outstanding debt Sales growth is 25% for the first two years, then 5% thereafter. 1. 2. 3. 4. Case Study Analysis Papers grading rubric Grading Criteria Maximum Points Completed Panera Bread Company's 2007 forecast financial statements. Discuss the benefits 10 and limitations of each method. Describe why you chose the approach you used in this case study Develop a 5 year Financial Forecast (Balance Sheet and Income Statement)