Jet Task 5
Western Governors University
JET2 – Task 5 - Financial Analysis
Chief Financial Officer Presentation

A1. Key Points
Custom Snowboards, Inc. would like to present financial statistics in an effort to secure funding for an expansion project into Europe. There has been considerable growth in the percentage of sales and a substantial increase in revenue. The company is requesting capital debt in the amount of $1 million to fund the extension project. Future sales are expected to continue to surge, allowing for an inflow of revenue to meet the needs of both Snowboard and the lender. A horizontal analysis will reveal data of the company’s profitability, liquidity and solvency over a three year period that will assist with the approval process. The results of the analysis will reveal key points that will confirm the company’s ability to successfully expand into Europe while continuing to provide maximum shareholder returns.
Profitability
A measurement of Snowboard’s profitability will divulge a picture of the financial health. A breakdown of the income statement will show income and expenses during each business year for a three year period. “The results of the profitability analysis will display how profit was earned in relation to sales, total assets and net worth.” (Hunt, 2013).
· Net Sales
“Custom Snowboards finance team is well aware that sales are an important factor in determining profitability.” (Hunt, 2013). During period from year 12 to year 13, net sales increased 32,200, 0.49%. Although the increase is slight, it’s an indication of strength in the company’s ability to raise sales volume. “Not only will an increase in sales benefit the company, it will better prepare the corporation to handle adverse market conditions and economic downtrends.” (Hunt, 2013). During period years 13 to 14, net sales dropped by 3.40 %, totaling $225,400. This