Reference no: EM133922905

Problem

You are an accounting associate working on a team for Rebel Dog Coffee, LLC, a privately held premium coffee crafter. Rebel Dog is considering expanding into retail by leasing a large manufacturing facility with a loan. The CFO has asked you to review the project projections and compare them to a close market competitor using the indirect cash flow method, emphasizing cash flow health and debt to equity ratios, and then develop an executive summary to present to the board.

This project will help you use financial statements, another company's financial information, and other factors to make forecasts of a company's financial data.

Directions

For this project, you will use the financial statement for Rebel Dog Coffee, the extended scenario, and a competitor's information, all linked in the Supporting Materials section, to present your findings in an executive summary to the board.

Specifically, you must address the following:

I. Describe potential supplemental financial information and company disclosures needed relating to the lease, loan, and share issuance, using the extended scenario and your company's financial statements. Get the instant assignment help.

II. Compare the differences in the company disclosure that the additional loan payments would create in future financial statements, using the extended scenario and your company's financial statements.

III. Describe potential impacts to the new loan repayment schedule for Rebel Dog Coffee, using the extended scenario and your company's financial statements. Consider the following in your response:

i. Differences in the disclosure that the additional period monthly payments would create for the cash flow

IV. Describe which parts of the cash flow statement would apply to the financials in the expansion.

V. Analyze Rebel Dog Coffee's forecasted statement of cash flows.

VI. Compare your company's projected cash flow to the competitor's cash flow. Consider the following in your response:

i. Both companies' financial positions
ii. Recommendations that could be made to improve your company's projected financials

VII. Compare your company's balance sheet liabilities section to that of the competitor. Consider the following in your response:

i. Both companies' financial positions
ii. Recommendations that could be made to improve your company's projected financials

VIII. Compare your company's financial ratios section to that of the competitor's. Consider the following in your response:

i. Both companies' financial positions
ii. Recommendations that could be made to improve your company's projected financials.