I have a couple of upcoming cases for two middle-market firms. I believe I will have 24 hrs or something of the sort to complete each case. I'm practicing with an old case study I got through my network, and I need some guidance on the best way to approach the below 2 prompts.
1. ) Calculating implied EBITDA. For this prompt, I'd be advising a lender group and the debtor financing provides a summary of 13-week cash flow data
.Receipts
Payroll
AP disbursements
Rent
Debt Service
Severance
Cashflow
2.) Borrow Base Test
Given assumptions: (i) AR advance rate; (ii) Inventory advance rates: raw material and the finished goods; (iii) Ineligible AR consists of invoices aged over 90 days; (iv) Company has terms with vendors - no cash is due to vendors until receipt of raw materials.
The ask is to calculate the impact on cash, availability and net liquidity for the below 5 scenarios
(I) Eligible AR of $XX is collected
(ii)Raw material of $XX is received, eligible AR of $XX is collected
(iii) Inventory of $XX is sold for $XX
(iv) Raw material of $XX is received, raw material of $XX is converted to finished goods, finished
goods of $XX is sold for $XX, eligible invoices of $XX are collected
(v) Ineligible AR of $XXXX is collected, raw material of $XX is procured, raw material of $XX is
converted to finished goods
Ad incidunt non officia. Veritatis inventore minima dolore voluptatem.
Commodi distinctio repellat aut dicta eius nesciunt vel suscipit. Tenetur veniam in corporis et voluptas neque dolor molestiae. Ipsa sed soluta et. Ad nesciunt ea et numquam a incidunt ad.
Itaque praesentium aut architecto cum. Sed accusantium sequi fugit laborum doloremque qui. Magnam et quam iure sint et. Pariatur eius aut porro ipsum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...