Review the Gale Force Surfing final case study attachment below. The case study analysis needs to be at least 5 pages in length and you will use the questions and charts provided in the Case Study Attachment to help guide your analysis. Use three (3) or more sources.

The Questions:

1. Tables 1 through 5 contain the financial information describing the effects of level production on inventory, cash flow, loan balances, and interest expense. How I should recreate these tables in a scenario where Tim’s suggestion were implemented; that is, change the Production This Month column in Table 2 from 400 each month to 150, 75, 25, and so on, to match Sales in the next column? How would I recompute the remainder of Table 2, and Tables 3, 4, and 5 based on the new production numbers; if the Beginning inventory is still 400 units, Beginning cash is still $125,000, and that remains the minimum required balance?

2. Given that Gale Force is charged 12 percent annual interest (1 percent a month) on its cumulative loan balance each month (Table 5), how much would Tim’s suggestion save in interest expense in a year?

3. Up until now, we have not considered any inefficiencies that have been introduced as a result of going from level to seasonal production. Assume that there is an added expense for each sales dollar of .5 percent (.005). Based on this fact and the information computed in question 2, is seasonal production justified?