Problem
The Bunyans supply case study
i. What is Bunyan looking at that makes him so positive and confident? Why is the bank pestering Bunyan? Who is right? Why? (I had a sneaking suspicion that some of you might need a little direction in answering some of the above questions. Therefore, in addition to the Balance Sheet, Income Statement and Statement of Cash Flow, I have included some ratio analysis sheets for you to complete. Calculate these ratios and you should be able to answer above questions.)
ii. Bunyan is projecting sales to reach $6,170 in 19x1. Do you think he will be able to finance this growth assuming his balance sheet items (as a% of sales) stays the same as it was in 19x0?