Custom Snowboard Inc.



PART A1

Report Presentation To Chief Financial Officer1

1. Financial Highlights1

2. Risk Mitigation by the company2

3. Ratio Analysis3

PART B6

1. Historical Analysis of Past Performance6

2. Current Operations Improvement8

3. Internal and External Risks That Custom Snowboards along with the Recommendation9

4. Potential Returns10

5. Constructing New Building or Expanding Current Presence11

6. Recommendation for Financing12

References13

Custom Snowboard Inc.

PART A

Report Presentation To Chief Financial Officer

This report is designed in order to approach the bank officer for a loan of $1,000,000. Company is considering an expansion plan to Europe, due to the forecast that the Europe market has tendency to generate better profits.

1. Financial Highlights

There are various points in the ctual financial conditions of the organization which might be impactful on the decision being made by the loan granting officer. There is a great influence of the tendency to repay the loan. The vertical analysis basically shows the relationship of the particular with the a base amount and this base amount is usually sales. In case of Custom Snowboards Inc gross profit is indicating that there has been a stagnancy since the year 12 to the year 14. On the other hand operating expenses are on the similar situation with stagnancy in all the three years. This is indicating that company has been maintaining the level of sales and company's operating expenses ratios are steady with it sale.

The general and administrative expenses have been increasing from the year 12 to year 14, this is with a percebtage of 14.2% to 16.9%. operating income has also been decreasing from year 12 with a value 4.4% to the year 14 with 1.8%, due to this increase in general and administrative expenses occurs (Jerry et al, 2011).

The company is also experiencing a decline in the EBIT which is as high as 3.2% ti 0.6% in the span of three years. net income is also also showing a decline when being compared to the yerly sales. The level of current assets is also much higher in the recent year.

Current assets in year 14 higher than year 12, fixed assets also improved as company has invested again in year 14 compared to year 13. Total debt and liabilities reduced in all the three years consistently. Retain earning were although improved when considering the year 14. This simply illustrates that the company is maintaining the sufficient cash for tough times.

Coming to the horizontal analysis which shows the dollars changes on yearly basis. Here the Balance Sheet items are partially declining. In year 13 current assets increased in year 13 were in the best position among all other two years where the values are relatively lower. Total assets have been reduced in the recent year lthough it was increased in the year 13 with a better value in all the three years. Total liabilities has been reducing which is a desirable situation for the company. Overall the trend of company is in good health but in year 13, company was performing much better than year 14 and it is expected ...