REQUIRED1. 2. 3. 4. 5. Using the data input provided (Exhibit 1), prepare LAF’smaster...
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Accounting
REQUIRED 1. 2. 3. 4. 5. Using the data input provided (Exhibit 1), prepare LAF’s master budgets in Excel. Do not hard-code numbers into the spreadsheet, except in the financing section of the cash budget. Conduct a sensitivity analysis, decreasing sales 2%, 5%, and 10% for April through August. New sales levels are provided in Exhibit 2. Adjust the financing and cash needs at these new sales levels. Determine a credit recommendation for Kent Bank, to lend or not. Be prepared to justify your credit decision. Explain why the cash budget is more important to a bank than the accounting net income when determining a credit decision. Explain why decreases in sales is examined in a sensitivity analysis for a credit decision.
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