Description
Considering your Cloud Ware Company, compare the November ending Profit and Loss Statement with the end of December Profit and Loss statement. This work should be done in Excel.
Compare the November Balance Sheet with the balance sheet as of December 31st. After analyzing the statements, answer the following questions: -ATTACHED
- What is the financial situation of the company as of November 30?
- Did the financial situation improve, remain the same, or start to decline through the month of December?
- What areas of strength exist in the company? What are the company's weaknesses?
- What are some areas where the company has opportunities for growth for the company's financial situation?
- To help you justify the above answers, financial ratios should be calculated. At minimum, the following ratios should be calculated and used to support your arguments:
- Debt to Equity Ratio (Total Liabilities/Equity) This ratio provides a look at how much the creditors have put into the company compared to how much the owners have put into the company.
- Current Ratio (Current Assets/Current Liabilities) This provides a look at whether the business has enough current assets to pay their current liabilities.
- Profit Margin (Net Income/Sales) This provides a measure of how much profit is earned on each dollar of sales.
You have decided to request a bank loan to expand your Cloud Ware business and the lender has asked for a one-year projection of revenue and expenses.
To request the loan, you will need to create a Pro Forma one year budgeted income statement broken down over 12 months. You will need to look at the actual ending financial statements for October, November, and December and use this data to help create the forecast for the next fiscal year of business.
Using financial ratios will be critical in supporting your argument for the loan and be aware that most bankers or lenders will not even consider a loan prospect without addressing, for example, the impact of additional debt on your debt to equity ratio.
* ANY INFORMATION (numbers) that is missing or lacking just add to the balance sheets to do the assignment.
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Explanation & Answer
forget thisplease use those copies
https://www.studypool.com/questi
ons/676350
by Robert F
Submission date: 03-Nov-2017 09:51PM (UT C-0400)
Submission ID: 874138440
File name: Cloudwarecompany_1.docx (55.31K)
Word count: 663
Character count: 3477
https://www.studypool.com/questions/676350
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cloud_ware
Balance Sheet
As of October 31, 2017
ASSETS
Current Assets
Bank Accounts
101 Checking
205 loans payable
Total Bank Accounts
Accounts Receivable
105 Accounts Receivable (A/R)
Total Accounts Receivable
Other Current Assets
115 Merchandise Inventory
125 Prepaid Expenses
Total Other Current Assets
Total Current Assets
Fixed Assets
135 Computer Equipment
Total Fixed Assets
TOTAL ASSETS
LIABILITIES AND EQUITY
Liabilities
Total Liabilities
Equity
301 Common Stock
305 Opening Balance Equity
318 Retained Earnings
Net Income
Total Equity
TOTAL LIABILITIES AND EQUITY
Wednesday, Nov 01, 2017 03:21:29 PM GMT-7 - Accrual Basis
Equity to debt ratio as at 30th Nov
E: D = (total assets – total liabilities): total liabilities
= ($82,655.11 - $26,820.000): $26,820.00
= 55835.11: 26820
= 2.082: 1
= 1: 0.48
Month
October
November
December
Month
October
November
December
January
February
March
April
May
June
July
August
September
October
November
December
Equity to debt ratio as at 30th Nov
E: D = (total assets – total liabilities): total liabilities
= ($82,655.11 - $26,820.000): $26,820.00
= 55835.11: 26820
= 2.082: 1
= 1: 0.48
Current ratio as at 30th Nov
Current ratio = current assets/ current liabilities
= $72,655.11 / $26,820.00
2,7
th
Profit margin as at 30 Nov
= -4,164.89/ 0
0
cloud_ware
Balance Sheet
s of October 31, 2017
Total
47.883,08
-5.000,00
$
42.8...