FIN5FMA Assignment FINANCIAL MANAGEMENT - SEMESTER 2, 2016 The research project is a case analysis based around applying subject content and...

1. Why can’t profitable company like Jackson repay its loan on time? What majorcompany developments between August 2012 and May 2013 contribute to thissituation? Prepare a sources and uses of funds statement for Aug 2012 through May2013.2. Why does the company need a new loan? How urgent is the need for the additionalborrowing?3. Prepare monthly cash budget and pro forma income statements and balance sheetsfor the last four months of the fiscal year.4. Based on your forecasts and analysis of Jackson’s credit, is the company able to repayits loan at the end of the fiscal year? What are the risk associated with the proposedloan?25. Critically evaluate the assumptions on which your forecasts are based and performsensitivity analysis on the fiscal year‐end cash balance when sales forecasts vary fromexpectations.6. Should the bank extend the maturity of the current loan and approve the additionalloan? What terms and conditions should the bank impose to reduce the risks of theloan to the bank?7. Why did the company repurchase a substantial fraction of its outstanding commonstocks? What’s the impact of the repurchase on Jackson’s financial condition?8. Critically assess the company’s proposed dividend payout in September 2013. Shouldthe bank agree with the payout? What seems to be an appropriate amount?