Reference no: EM131975829

Wahl Industries Wahl Industries has applied for a loan from the Trust Bank, in order to invest in several potential opportunities. In order to evaluate the firm as a potential debtor, you have been appointed as a financial analyst by Trust bank to assess the Wahl Industries Financial performance and conditions. The following are the key financial data given to Trust Us Bank: Key Financial Data Key Wahl Industries: $ Sales Revenue 4,500,000 Net profit after taxes 337,500 Total assets 6,750,000 Total liabilities 3,375,000 Industry Averages: Total asset turnover 0.71 Debt ratio 33.00% Financial leverage multiplier 1.50 Return on total assets 6.75% Return on equity 10.00% Net profit margin 9.50% Required: Prepare a report for the Trust bank analyzing whether or not the bank makes the loan Wahl Industries you report should include: (a) The analysis of profitability and risk measure via Constructing the DuPont and modified DuPont system of analysis using the following financial data for Key Wahl Industries. (b) Which areas of the firm need further analysis? (c) A discussion of what other factors Trust bank should consider before deciding whether or not to make a loan. Note: Relevant calculations and limitations of analysis should be included in the report. Kindly answer the above question using this format. 1. Introduction 2, Analysis 3. Discussions 4. Conclusions 5. Limitations and Assumptions used.