What would you recommend to mr. cartwright

Assignment Help Financial Accounting

Reference no: EM13660127

Q1.) Is this company healthy? Construct common size statements for the years 2001 to2003 based upon sales. Calculate current liabilities, long-term debt, and equity as a percent of assets over the period. Do a ratio analysis using the basic ratios shown in the Cartwright Lumber Company Spreadsheet available on blackboard. Then analyze the income statement and balance sheet from 2001 to2003 in order to explainwhat they tell you, but do not make recommendations at this time.

Q2.) Do you agree with his estimate of the company's loan requirements? How much will he need to borrow to finance his expected expansion in sales? Assume a 2004 sales volume to be that mentioned in the case, that he does nottake purchase discounts for the period January 1 to December 31, 2004 and beyond, and that the relationships between sales and those income and balance sheet line items that vary with sales will be the same in 2004 as in 2003. Ignore the data in the case for the first quarter of 2004.

Q3.) If you were a banker, how would you evaluate the loan? Discuss including the five C's of credit.

Q4.) Does it make sense for Mr. Cartwright to take the purchase discounts if he can? How will this affect his cash requirements for 2004? What would the income statement and balance sheet look like if he took the discounts for the entire 2004 year?

Q5.) What would you recommend to Mr. Cartwright and to the banker?

Reference no: EM13660127

Questions Cloud

What is the focal length of the mirror : An object is 24 cm in front of a concave mirror and produces an upright image that is 3.1 times larger than the object. What is the focal length of the mirror?

In a house the temperature at the surface of a window : In a house the temperature at the surface of a window is 23°C. The temperature outside at the window surface is 6°C. Heat is lost during the window via conduction, and the heat lost per second has a certain value.

Ignoring the heat lost along the length of the poker : One end of an iron poker is placed in a fire where the temperature is519°C, and the other end is kept at a temperature of 26°C. The poker is 1.2m long and has a radius of 5.0 multiplied by 10-3 m.

What is the magnitude of the charge on each ball : Two 0.13g pith balls are suspended from the similar point by threads 40cm long. When the balls are given equal charges, they come to rest 22cm apart. What is the magnitude of the charge on each ball? (Neglect the mass of the thread.)

What would you recommend to mr. cartwright : What would you recommend to Mr. Cartwright and to the banker and what would the income statement and balance sheet look like if he took the discounts for the entire 2004 year?

Bullet is fired into the bob of a ballistic pendulum of mass : A 18 g bullet is fired into the bob of a ballistic pendulum of mass 1.6 kg. When the bob is at its maximum height, the strings make an angle of60° with the vertical. The length of the pendulum is 2.3 m. discover the speed of the bullet.

Constant speed from earth to a planet orbiting another star : A spaceship travels at a constant speed from earth to a planet orbiting another star. When the spacecraft arrives, 11 years have elapsed on earth, and 6.9 years have elapsed on board the ship. How far away (in meters) is the planet, according to obse..

A wagon is rolling forward on level ground : A wagon is rolling forward on level ground. Friction is negligible. The person sitting in the wagon is holding a rock. The total mass of the wagon, person and rock is 95.0 kg. The mass of the rock is 0.300 kg. Originally the wagon is rolling forward ..

Satellite moves around the earth in circular orbit of radius : A satellite moves around the Earth in a circular orbit of radius r. (utilize G for the universal gravitation constant, M for the mass of the Earth, and r, as appropriate, when answering parts (a), (b), and (c) below.)

User Account

All Pages