Reference no: EM131302639
Analyzethe case study, "Frank Smith Plumbing."
Analyze the "Frank Smith Plumbing's Financial Statement" spreadsheet.
Compare the cost of the truck to the cash flow records
Develop a 1,050-word analysis and include the following:
- Explain why limited leverage is good for business.Show the profitability of the project so that Stephanie can convince her father to purchase the truck by borrowing money.
- Explain how Stephanie should convince her mother that it is inappropriate to call the bank manager and his wife for assistance in getting the loan approval?
- Analyze whether the investment in the truck is profitable.
- Explain whether it is more beneficial for Frank to close his business.
- Explain what you would do in this same situation.
Format your assignment consistent with APA guidelines.
After reading the case complete the following tasks:
1. Assume you are Stephanie, research whether there is an ethical problem with Elena calling the bank manager and his wife and getting the loan approved. If there is an ethical issue, how should Stephanie convince her mother that it is inappropriate to call the bank manager and his wife for assistance in getting loan approval?
2. Explain why limited leverage is good for business.
3. Based on the given information, tax rate, and depreciation show the profitability of the project so that Stephanie can convince her father to purchase the truck by borrowing money.
Attachment:- Frank-Smith-Plumbing-data.rar
Attachment:- Frank-Smith-Plumbing-Case-Study.rar
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