Prepare an analysis of the assigned company (600 – 800 words) in order to secure a loan for the company. The loan will increase the company’s total liabilities by 3%. The assigned company is posted to the conversation section in the upper right corner. The contents of the plan should include the following:
1. Discuss the loan amount and how you plan to use the loan proceeds.
2. Use the Excel Spreadsheet provided and complete the following.
- a. Prepare a five year vertical analysis of the company’s income statement.
- b. Prepare a projected income statement for 2020 and 2021 assuming sales increase by 3% and 6%.
- c. Compute the ratios listed with the income statement.
- d. Compute the ratios listed with the balance sheet.
3. Using the results of your spreadsheet, what questions would you ask the CFO of the company? Explain.