Assignment: Ratio Analysis
Prepare an analysis of the assigned company (600 to 2,000 words) in order to secure a loan for the company. The loan will increase the company's total liabilities by 3%. The contents of the project include the following:
• Discuss the loan amount and how you plan to use the loan proceeds.
• Use the Excel Spreadsheet provided and complete the following.
o Prepare a five year vertical analysis of the company's income statement.
o Prepare a projected income statement for 2020 and 2021 assuming sales increase by 3% and 6%.
o Compute the ratios listed with the income statement.
o Compute the ratios listed with the balance sheet.
• Using the results of your spreadsheet, what questions would you ask the CFO of the company? Explain.
The assigned company, spreadsheet, detailed instructions, and guidance are provided during week three. To review this information select the conversation icon in the upper right corner.
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.