Instructions for Week 4 Knowledge Checks and Calls to Action

The assignment for this week will be to prepare a new forecast for New England
Boat Company (NEBCO) for Year 2 assuming higher sales growth.

Week 4 Assignment:

 Download the Week 4 Assignment document from the course website.

 This document contains NEBCO’s Year 1 income statement and balance sheet,
the assumptions and forecast for the Base Case forecast (which we are
reviewing in our videos this week), and assumptions for a “High Growth
Forecast.”

Forecast Template (excel):

 Download the excel template, “NEBCO High Growth Forecast Template.”

 As you complete the Knowledge Checks this week, fill in the “Year 2 High
Growth” column in the excel template.
 As you fill in the forecast, the subtotals on the Income Statement and Balance
Sheet will automatically update as will the ratios and the Statement of Cash
Flows.
 In order for the Statement of Cash flows to articulate with the Balance Sheet,
you must “balance” your forecasted Balance Sheet by adding any excess
financing required to the “New Long-term Debt” line in the Balance Sheet.

Knowledge Checks and Calls to Action are provided for each of the four topics this
week. Participants who want to earn a certificate for the course must complete the
following:

1. All (4) knowledge checks

2. At least 2 Calls to Action
3. Read and comment on at least 2 Calls to Action submitted to the Discussion
Forum by other participants.

Topic 1: Forecasting Sales & Expenses

Knowledge Check – Topic 1: Multiple Choice Questions. (3 questions)

Call to Action – Topic 1: As the CEO of NEBCO, what areas of the business would
you focus on in order to achieve the forecast for sales and expenses? Which forecast
do you prefer – Base Case or High Growth – and why? Post a short summary of your
answers to these questions (3-4 sentences) to the discussion forum and compare
your analysis to others.
Topic 2: Interest, Taxes, & Current Operating Assets

Knowledge Check – Topic 2: Multiple Choice Questions. (5 questions)

Call to Action – Topic 2: As the CEO of NEBCO, what areas of the business would
you focus on in order to achieve the forecast for interest, taxes and current operating
assets? Which forecast do you prefer – Base Case or High Growth – and why? Post a
short summary of your answers to these questions (3-4 sentences) to the discussion
forum and compare your analysis to others.

Topic 3: Fixed assets & Current Operating Liabilities

Knowledge Check – Topic 3: Multiple Choice Questions. (3 questions)

Call to Action – Topic 3: As the CEO of NEBCO, what areas of the business would
you focus on in order to achieve the forecast for fixed assets and current operating
liabilities? Which forecast do you prefer – Base Case or High Growth – and why?
Post a short summary of your answers to these questions (3-4 sentences) to the
discussion forum and compare your analysis to others.

Topic 4: Financing liabilities & Equity; Scenario Analysis

Knowledge Check – Topic 4: Multiple Choice Questions. (3 questions)

Call to Action – Topic 4: As the CEO of NEBCO, what areas of the business would
you focus on in order to achieve the forecast for financing liabilities and equity?
Which forecast do you prefer – Base Case or High Growth – and why? Post a short
summary of your answers to these questions (3-4 sentences) to the discussion
forum and compare your analysis to others.

1.