Cartwrght Lumber case study

write up paper with the case summary, and the company’s fin” rel=”nofollow”>inancial situation. And answer all of the question below.l. Why does this profitable company need cash?
2. How much cash does Cartwright need? Assume 2004 annual sales of $3.6 million (given in” rel=”nofollow”>in the case), with 20% annual growth for four years thereafter. You may also assume that Cartwright takes all possible trade discounts the last three quarters of 2004 and beyond. Assume that most operatin” rel=”nofollow”>ing items in” rel=”nofollow”>increase in” rel=”nofollow”>in lin” rel=”nofollow”>ine with their historical relation to sales. Prepare an Excel spreadsheet in” rel=”nofollow”>includin” rel=”nofollow”>ing—at min” rel=”nofollow”>inimum—the fiscal year-end 2004 pro forma in” rel=”nofollow”>income statement and balance sheet to show the company’s cash needs. The template on Canvas provides some guidance. Optionally, you might in” rel=”nofollow”>include anticipated 2005 pro-forma fin” rel=”nofollow”>inancial statements as well.
3. Would you, as Mr. Dodge, agree to lend Cartwright the needed money?
4. Suppose you are advisin” rel=”nofollow”>ing Mr. Cartwright. What changes would you recommend he make to improve his busin” rel=”nofollow”>iness and its fin” rel=”nofollow”>inancial condition? You may consider both changes to operations as well as strategies for Mr. Cartwright to fin” rel=”nofollow”>inance his operations. In makin” rel=”nofollow”>ing your recommendations, assume that the bank will not loan Mr. Cartwright more than 60% of his accounts receivable balance. You might confirm the results of your changes usin” rel=”nofollow”>ing the Excel model you developed.
5. Prepare an Excel spreadsheet with 5-year pro forma in” rel=”nofollow”>income statement and balance sheet to show the company’s cash needs. 6. What are the alternatives open to Mr. Cartwright if Mr. Dodge refuses his request for an in” rel=”nofollow”>increased credit lin” rel=”nofollow”>ine? 7. How attractive is it to take the trade discounts?

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