Problem: Polar Sports Case
• What is your recommendation for Mr. Weir? What factors should Mr. Weir consider in deciding whether to adopt level production?
• What are the total savings from adopting level production?
• Estimate the amount of funds required and the timing of the needs under level production. Does Polar need more than $4 Million in short term financing in any given month?
• Thinking about Polar's Bank, as their banker would you be willing to extend the line of credit to more than $4 Million to finance level production? Why or why not?
• What other sources could substitute in part for bank lending if the lender is not willing to extend the present line of credit?
• Compare the liability patterns feasible under the alternative production plans. What implications do their differences have for the risk assumed by the various parties?
• What would be the impact of unsold inventory on cash flows and projected cost savings?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.
Attachment:- Polar-Sports-Inc.rar