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Finance Assignment Sheet 2007-2008 John PDF
Finance Assignment Sheet 2007-2008 John PDF
Affiliated with the University of Western Ontario, London, Canada N6A 2M3
NOTE: As we work through the theory, the noted exercise for each class is to be completed
before that class, for discussion during class unless otherwise noted (in some classes, the
exercises will be done in class). Any handouts (if any were given out) will be available on-
line for you to print or outside my office door, DLH-222, as noted.
Monday, September 10
Wednesday, September 12
Monday, September 17
NOTE: A take-home quiz will be given out today to practice Financial Statements to be
handed in next Monday.
Wednesday, September 19
To be done for today: Put the I/S, B/S and SRE together for:
1. Kelly Automotive Parts Wholesaler Inc. (casebook)
2. Glenn’s Glue Stick (casebook)
3. Lisa’s Waterbed Emporium (casebook) (if time is available)
Financial Management
Special Note from John: This section is very heavy. TRY to look over the material and do the
readings before the class in which we discuss the topics. It will make your life much easier.
Wednesday, September 26
Monday, October 1
Lecture: Preparing Projected Statements: Making Assumptions and the “Plug” (slides)
: Term of Loan and Seasonality (slides)
Read : Introduction to Financial Management, page 84 – 92
John will be walking through the material and exercise today. Try not to miss this class.
To be done for today
1. Exercises 1, 2, 3, DEF Co. Ltd., page 110, use the Bank Loan as the “plug” figure.
Wednesday, October 3
Topic: Analyzing Ratios, SCF and Preparing Projected Statements
To be done for today:
1. Cases: Gardiner Wholesalers A & B. Check the website for the learning aids.
a. Analyze the cashflow statement for each firm. What is happening?
b. Analyze the ratios for each firm. Comment on each firm.
c. Prepare a set of Projected Financial Statements for Elegance Jewellers for the
year ended June 30, 2003. Use information from both Gardiner A & B.
Monday, October 8
Thanksgiving – No Class
Wednesday, October 10
Monday, October 15
Case : Maple Leaf Hardware, text, page 161. (continued from last day)
To be done for today
1. How much money does Maple Leaf need?
2. Discuss the appropriateness of the term of the loan and any seasonality effects on the
company’s financing requirements.
3. Analyze the 4 Cs. Should the loan request be granted? Why or why not?
Wednesday, October 17
Monday, October 22
Wednesday, October 24
Case : Lawsons, text, page 154 (Note: Age of Payables is 17 days for non-overdue accounts)
To be done for today
1. Analyze the Statement of Cash Flow (casebook).
2. Analyze and interpret the selected financial ratios
3. Prepare a set of projected statements for the years ending January 31, 2004 and January 31, 2005.
Monday, October 29
Case : Lawsons
To be done for today:
1 Interpret the required financing amount. What is your PLUG? What adjustment needs to be made
for seasonality?
2 Conduct a sensitivity analysis on days of inventory, A/R and A/P.
3 Assess the capacity to repay, collateral character and business conditions for Lawsons
4. What alternatives should you consider? What is your decision? Provide support for your
reasoning.
Wednesday, October 31