Learning Goal: I’m working on a business question and need guidance to help me learn.
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Advanced Business Financial AnalysisPolar Sports, Inc. Case Instructions
Instructions For Polar Case
Obtain a copy of the HBR case from https://store.hbr.org
The case is Polar Sports Inc. (a case by Carl Kester and Wei Wang)
Read the case and conduct a thorough Financial Analysis
Utilizing only the material provided in the case, complete the following tasks.
- Prepare pro forma income statements, balance sheets and cash flow statements to estimatethe amount of funds required and the timing of the needs under level production.
- What are the market, competitive and operational characteristics of Polar?
- Why is Polar having a cash flow issue under seasonal production?
- What is the maximum amount of financing that Polar needs in any given month?
- What factors should be considered before moving to level production?
- If you were the banker, would you be willing to lend credit to more than $4 million to financelevel production?
- What other sources of capital could substitute for bank lending?
- What would be the impact of unsold inventories on cash flows and projected cost savings?
- At are the cost savings of moving to level production? IS it a good idea?You can work in teams, just identify who was in your team and everyone needs to submit theirown memo.Post your memos to CANVA