Custom Snowboards Essay

7332 WordsJan 6, 201330 Pages
WGU-Finance_Task5_JET2.doc Passed on first attempt. (use cut and paste of screen shots of balance sheets etc etc.) Memo To: CFO From: Michael Allen Date: 11/01/2012 Re: Financial Summary Report Table of Contents A1. Key Points. Provide a logical summary of the company’s financial picture. 4 Income Statements: 4 Income Statement Analysis Results: 5 Horizontal Analysis, Percentage: 8 Horizontal Analysis, Weaknesses and Strengths: 8 Vertical Analysis Results: 10 Trend analysis results: 11 A2. Identify Risks and Concerns: 12 Concern #1, Net Sales 13 Concern #2, Administrative Salaries & Executive Compensation & Employee Wages 13 Concern #3, Other General and Admin Expenses 14 Concern #4, Net Profit Margin. 14 Mitigating Risks: 14 Mitigate Concern #1, Net Sales. 14 Mitigate Concern #2, Administrative Salaries & Executive Compensation & Employee Wages. 15 Mitigate Concern #3, Other General and Admin Expenses 15 Mitigate Concern #4, Net Profit Margin. 15 A3. Ratio Analysis: The Company’s ability to repay the principal and interest 15 Ratio analysis results 15 i) Liquidity 16 ii) Solvency: 17 iii) Profitability 20 B1. Historical Analysis: Of past performance. 23 B1a. Future Performance: What the historical analysis indicates about future performance. 25 B2. Improvement: Through better cost controls. 27 B3. Internal and External Risks. 33 Internal Risks: 33 Internal Risk #2: 34 Internal Risk #3: 34 External Risk #1: 36 External Risk #2: 36 External Risk #3: 36 External Risk #4: 36 B3a. Recommendations 37 Capital Structure 37 A. Capital Structure Recommendations 39 B. Lease Vs. Purchase Recommendations 42 C.

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