The Interstate Bakeries Company Financial Health case along with the questions for you to answer in your memo are located in the attachment “Interstate Bakeries – Guidelines”.
This case requires you to review background information from the following files:
” IBCspring case 3.doc” (Note: This case document will be your capstone strategy course case. Here you must use it as a historical reference and for background information to assist you in understanding the financials. Cite page and paragraph when you make reference.)
” IBC Financial Statements.docx” (Printable Balance Sheets and Income Statements from 1994 – 2004) or ” IBC Financials.xlsx “(for excel functionality)
” IBC Case Ratios.xlsx”
Actual Task which can also be found in attachment “Interstate Bakeries- Guidelines”:
Using all of IBC’s financial statements, financial ratios, background history and other appendices, the CFO is asking you, the senior financial analyst for IBC, to assess the financial health of Interstate Bakeries as follows:
Review IBC history to assist you in understanding and summarizing the key impacts totheir financial statements?
a. Review the time-trended Balance Sheets. What are several key findings? What actions might have shifted the balances? What items are concerning? Use numbers as evidence when discussing.
b. Review the time-trended Income Statements. What are several key findings?What actions might have shifted the balances? What items are concerning? Use numbers as evidence when discussing.
c.Ratio Analysis: Review the time-trended Financial Ratios. Prioritize the mostrecent over the past. What conclusions can you draw from these? Review competitor financial ratios. How does IBC compare to the industry?
d.Discuss IBC stock. What causes its price to change leading up to the time of thecase.
2) Discuss the costs and benefits of a potential next step for IBC. Merger? Acquisition?Bankruptcy? Divestitures? Support your position using logic and economic measures.
Use Times New Roman 12 pt, one-inch margins, on a well-written memo to the CFO.
