Problem: Read the financial statement for Tootsie Roll Industries Inc. The financial statement can be found here:
https://www.annualreports.com/Company/5072
Conduct an Internet search information on how to assemble a loan package by researching loan package requirements at The U.S. Small Business Administration website (https://www.sba.gov/) or on other websites, such as the SCORE website (https://www.score.org/). Research the specific loan package requirements of creditors, such as American Express, by reviewing their websites.
- Prepare a loan package to secure a loan for Tootsie Roll Industries Inc. that would increase the company's total liabilities by 10%. Your loan package should include the following:
- A ratio analysis of the financial statements for Tootsie Roll Industries Inc., including several types of liquidity, solvency, and profitability ratios and an explanation of each ratio
- A justification of the reason the company needs this loan; the purpose might be for expansion, inventory purchases, debt retirement, and so on
- An explanation of how the company plans use the proceeds from the loan and of how loan approval might affect the company.