Answer the following questions: 1. Why can’t profitable company like Jackson repay its loan on time? What major company developments between August 2012 and May 2013 contribute to this situation? Prepare a sources and uses of funds statement for Aug 2012 through May 2013. 2. Why does the company need a new loan? How urgent is the need for the additional borrowing? 3. Prepare monthly cash budget and pro forma income statements and balance sheets for the last four months of the fiscal year. 4. Based on your forecasts and analysis of Jackson’s credit, is the company able to repay its loan at the end of the fiscal year? What are the risk associated with the proposed loan?
5. Critically evaluate the assumptions on which your forecasts are….