For this module, you have a commercial loan case study to analyze and report on. The balance sheet and income statement for Netflix (NFLX) from XXXXXXXXXXare locatedhere. There are multiple parts to...

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For this module, you have a commercial loan case study to analyze and report on. The balance sheet and income statement for Netflix (NFLX) from 2012-2014 are locatedhere
. There are multiple parts to the project:



  1. Complete pro forma statements for the years 2015–2019, assuming an 8% growth rate for all line items. The cells that need to be completed are shaded in yellow.

  2. The management of Netflix has approached your bank about borrowing $50,000,000 dollars in the form of a long-term bond. The bond would have a 30-year maturity and an 8% coupon rate. The first step is to calculate what the interest expense would be for this bond for Netflix on a monthly basis. Next, discuss what areas of the income statement and balance sheet would be impacted by this new debt and how. Finally, write a one page recommendation to your credit committee regarding the approval of this loan.

  3. The management of Netflix has approached your bank about a line of credit. They are shopping for the largest line of credit and the best rate possible. Analyze the accounting statements and write a one page recommendation to your credit committee that includes if you think you should approve a line of credit; if so, how much, and a suggested interest rate. Explain your rationale and any assumptions you have made. Your summary should be at least 300 words.

  4. Lastly, prepare an 8–10 slides PowerPoint presentation summarizing your findings that you could use to present to the credit committee.

Answered Same DayOct 11, 2021

Answer To: For this module, you have a commercial loan case study to analyze and report on. The balance sheet...

Ishmeet Singh answered on Oct 16 2021
136 Votes
ANALYSIS FOR LINE OF CREDIT:
Based on the pro-forma we developed the financial statements for Netfl
ix for the period of 2015-2020 with the assumption of 8% growth rate. Similarly, keeping the bond issue interest expense incurred amortization scheduled we placed under the debt column the values for the immediate 3 yrs. & tried to scrutinize the Debt...
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