Bonne Chance Case Study

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Bonne Chance Case Suggestions on how to do this assignment: 1) Do a first reading of this case and try to get a quick understanding of each company and opportunity. This case will require putting together a financial model. 2) Read the “Questions “ below. 3) Read the case again with the assignment in mind. Completing the assignment: 1) This is a group assignment 2) Five groups will present on Tuesday 3) Bring the completed assignment with you to class on the assigned date. PUT YOUR Group’s NUMBER ON IT AND YOUR NAMES! Completion of this assignment under these requirements is worth 10% points on your final grade. Questions: 1. Using the data in the case, including base case sales projections, develop a spreadsheet model that has two major components; a weekly cash flow statement and a weekly income statement. The model should start on 10/1/2010 and end on 12/31/2014. Use the following assumptions: a. No SWATCH business b. No special promotions c. The minimum “other” product inventory described on p. 5 will be maintained d. Trade accounts payable will not exceed $200,000 during the forecast period e. The revolver loan will be at its maximum value of $530,000 and any additional cash will be supplied by the overdraft mechanism. The case indicates that the bank will not allow it, but for this analysis you should ignore that. f. Any other assumptions you think are necessary (20 points) 2. How is Zimmerman doing? How do you measure his progress? Conduct an analysis of the financial model that you have created, including strengths and weaknesses. (20points) In the first month (October) it is projected that Bonne Chance’s profit margin is -357.48% due to overdue liabilities and expenses. As time progresses, they gradually pick up business. It is only (with

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