In April 1996, Ned Hazen, Treasurer of Avid Technology (Avid), was reflecting on the company’s… 1 answer below »

Get perfect grades by consistently using Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20

Order a Similar Paper Order a Different Paper

In April 1996, Ned Hazen, Treasurer of Avid Technology (Avid), was reflecting on
the company’s first quarter performance. While Avid remained the market leader by
capitalizing on its first-to-market advantage, the company’s financial condition had
begun deteriorating toward the end of 1995. The first quarter of 1996 proved disastrous
and the company was experiencing a reversal of fortune. Avid lost more money during
this quarter than it had earned for the entire previous year. Even more alarming, the
Company had burned through $27.5 million in cash during the first quarter, leaving the
cash account balance at roughly $53 million. In preparation for a financial planning and
forecasting meeting with Avid’s new CEO, Bill Miller, Ned was asked to complete a
historical analysis of the company, a three year forecast, and be prepared to discuss the
1. Review the historical analysis in Exhibit 3 (also in the attached key).
2. Complete a three year forecast (Income Statement, Balance Sheet, and Cash
Flow Statement) using the assumptions in Exhibit 4 and the provided
template. (note – completing the template is optional practice. The key is
provided in the files folder)
3. How well Avid has performed historically. As a shareholder what are your
concerns? If you are not a current shareholder, would you invest in the
company? Why?
4. Assuming Avid obtains new notes payable to finance any new funding needs,
how much new debt will Avid need over the next three years?
5. What can Avid management do to reduce cash needs over the next three


Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Do you need help with this or a different assignment? We offer CONFIDENTIAL, ORIGINAL (Turnitin/LopesWrite/SafeAssign checks), and PRIVATE services using latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an A++ paper from our masters- and PhD writers.

Get a 15% discount on your order using the following coupon code SAVE15

Order a Similar Paper Order a Different Paper