Discuss the loan amount and how plan to use loan proceed

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Reference no: EM132451472 , Length: word count:- 2000

Question : Prepare an analysis of the assigned company (600 - 2,000 words) in order to secure a loan for the company. The loan will increase the company's total liabilities by 5%. The contents of the plan should include the following:

1. Write a synopsis of the company.

2. Discuss the loan amount and how you plan to use the loan proceeds.

3. Use the Excel Spreadsheet provided and complete the following.

  • Prepare a three year vertical analysis of the company's income statement.
  • Prepare a projected income statement for 2020 assuming sales increase by 9%.
  • Compute the ratios listed with the income statement.
  • Compute the ratios listed with the balance sheet.

4. Using the results of your spreadsheet, what questions would you ask the CFO of the company? Explain.

Format your paper consistent with APA guidelines. Deliverables: Paper (MS Word) and Excel Spreadsheet.

Question : Financial Analysis:

1. Open the Excel spreadsheet provided. Prepare a vertical analysis of Bridgford Foods income statement. Enter the percentages in columns C, E, and G. For additional information regarding vertical analysis, please review the following.

Question : Vertical Analysis

2. Prepare a projected income statement assuming sales increase by 9% in 2020.

  • Average your vertical analysis percentages for each income statement account and enter the results in column H, rows 4 - 11. Example: Add columns C, E, and G and divide by 3. (60.58+63.17+67.57)/3=63.77%. Column H, row 5 = 63.77%.
  • ter your projected sales number in column J, row 4. 
  • Column J: MultEniply projected sales by the average percentage.

3. Ratio Computations. Use Excel formulas to calculate financial ratios listed with the income statement and balance sheet tabs. Calculate the ratio for all four years (i.e. 2016-2018 and 2020). Do not prepare ratios that require data from the 2020 balance sheet. In this case, an "X" is entered in the appropriate cell.

For additional information regarding ratios, please review the following.

Question : Financial Ratios

Note: If there is a discrepancy between the formula used in our text versus the formula included with the above link, please use the formula provided with the link above.

4. Synopsis and Loan Proceeds: The written section of the project includes a synopsis of the company, loan proceed discussion, and CFO questions and explanations. Use the following resources to write a synopsis and to evaluate and explain how you plan to invest the loan proceeds.

Form 10-K

Corporate Annual and Earnings Report

5. Chief Financial Officer Questions: Using the results of your spreadsheet, what questions would you ask the CFO of Bridgford Foods? Explain.

Attachment:- BridgfordFoods.rar

Reference no: EM132451472

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