The case assignment is “Horseshoe Resort”, found in your course pack.
The assignment question is as follows:
As Peter Cowley, general manager for Horseshoe Resort, conduct the analysis necessary to determine
whether the new adventure park is a good investment.
Case Study Method
Please structure your assignmentusing the following sections:
• Issues and Objectives:
What are the key challenges or issues facing Horseshoe? Why is the new adventure park being proposed?
• Case Analysis
Your analysis should contain three parts:
1. Ratio analysis – Based on your review of the ratios in Exhibit 6, how is Horseshoe performing?
2. Projected financial statements – Prepare income statement and balance sheet for 2010.
Determine how much Horseshoe would be required in loans to finance the expansion.
3. Realizable collateral analysis and 4 Cs analysis – Conduct this analysis as if you were the loan officer granting Horseshoe the financing. Is Horseshoe a good candidate for a loan?
Will you recommend that Horseshoe go ahead with the expansion of the new park with the additional loan? Why or why not?