Finance

Assignment #5 Name_________________________________________

FIN 3360.001

Spring 2016

1. [Short-Term Financial Planning] Artero Corporation is a traditional toy products

retailer that recently also started an Internet-based subsidiary that sells toys online.

A markup is added on goods the company purchases from manufacturers for resale.

Swen Artero, the company president, is preparing for a meeting with Jennifer Brown,

a loan officer with First Banco Corporation, to review year end financing

requirements. After discussions with the company’s marketing manager Rolf

Eriksson and finance manager Lisa Erdinger, sales over the next three months were

forecasted as follows.

____________________________________________________________________

Month

Sales Forecast

__________________________________________________($000)_____________

October 2014 $1,000

November 1,500

December 3,000

____________________________________________________________________

Artero’s balance sheet as of the end of September, 2014 was as follows.

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Artero Corporation

Balance Sheet as of September 30, 2014 (in $ Thousands)

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Cash $ 50 Accounts payable $ 0

Accounts receivable 700 Notes payable 800

Inventories 500 Long-term debt 400

Net fixed assets 750...