Corporate Finance Business Letter, business and finance homework help

User Generated

fgagzna

Business Finance

Description

Explain how each account (see attached worksheet) impacted cash flow from one year to the next.The accounts either added or reduced the cash balance from one year to the next.I.e., the accounts were either a Source or Use of cash. The attached worksheet provides all the data you need to complete the project. I have also attached the template with questions necessary to be answered.

Prepare your Assignment in a minimum of 2 double-spaced pages in length, using size 12 point font in Microsoft Word, APA format.

Unformatted Attachment Preview

Assignment Outline Business Letter: Bank Loan Review Dear Mr. Smith, Last week your loan request was presented to the bank’s loan committee. The outcome of the committee’s vote resulted in a non-renewal of the loan. The loan committee focused on the following issues…Students completes the following… 1.… summarize…focus on “the” one account that significantly “reduced” cash balances. Explain to Bob how this one account could be the main reason the required $70,000 cash balance was not maintained. 2…explain…note two other accounts that dramatically reduced cash flow/growth and are of particular concern to you. Express an idea that might immediately improve this matter. 3…recognize…a couple of accounts that did increase cash flow. Make a specific note to Bob regarding how and why these accounts lead to inflows of cash; 4...explain…to Bob three actions that would continually increase cash flow and “correct the situation.” Explain that you look forward to meeting again in the 6 months in hopes of a loan approval. Regards, Bank Loan Review Team RC 5-15 Case Study Bob Smith Loan Review Data for Teams Comparative Balance Sheets and Cash Flow Statement Worksheet ASSETS Cash and marketable securities Accounts receivable Inventory Other current assets Total current assets Gross Plant and equipment Less: Accumulated depreciation Net plant and equipment $ $ $ $ $ $ $ $ 2014 33,411 260,205 423,819 41,251 758,686 1,931,719 (419,044) 1,512,675 $ $ $ $ $ $ $ $ 2013 16,566 318,768 352,740 29,912 717,986 1,609,898 (206,678) 1,403,220 Goodwill and other assets Total Assets $ $ 382,145 2,653,506 $ $ 412,565 2,533,771 LIABILITIES AND EQUITY Accounts payable and accruals Notes payable $ $ 378,236 14,487 $ $ 332,004 7,862 Accrued income taxes Total current liabilities Long-term debt $ $ $ $ 21,125 413,848 679,981 $ $ $ $ 16,815 356,681 793,515 Total liabilities Preferred stock Common stock (10,000 shares) Additional paid in capital Retained earnings Less: Treasury stock Total common equity Total Liabilities and Equity $ $ $ $ $ $ $ $ 1,093,829 10,000 975,465 587,546 (13,334) 1,559,677 2,653,506 $ $ $ $ $ $ $ $ 1,150,196 10,000 975,465 398,110 1,383,575 2,533,771 In addition, it was reported that the company had a net income of $3,155,848 and depreciation expenses were equal to $212,366 during 2014. Net Income $3,155,848 Depreciation $212,366 Dividends Paid -$2,966,412 Teams ent Worksheet The bank told Bob to increase cash to $70,000 from 2013 to 2014. But cash increased from $16,566 in 2013 to just $33,411 in 2014, well short of $70,000, ... why... Cash Up or Down $ 16,845 $ 58,563 EXPLAIN $ (71,079) EXPLAIN $ (11,339) $ (40,700) (321,821) 212,366 $ (109,455) EXPLAIN $ 30,420 (119,735) $ $ 46,232 EXPLAIN 6,625 EXPLAIN $ $ $ 4,310 57,167 (113,534) EXPLAIN (56,367) 0 0 189,436 (13,334) 176,102 119,735 epreciation expenses were Explain how the six highlighted accounts impacted cash flow from one year to the next. The accounts either added or reduced the cash balance from one year to the next. I.e., the accounts were either a Source or Use of cash. This one worksheet provides all the data you need to complete the project. You may want to assign each team member a respective 'Explain'.
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Good luck in your study and if you need any further help in your assignments, please let me know Can you please confirm if you have received the work? Once again, thanks for allowing me to help you Rthanks

1

Running head: BANK LOAN REVIEW

Bank Loan Review
Name
Institution
Date

BANK LOAN REVIEW
Bank Loan Review
Financial institutions are usually very categorical before issuing of loans to businesses.
They have to be assured of the business’ ability to pay the loan before their approval. Banks
attach various conditions to the firm before lending them money. They then monitor the business
for around six months pending the approval where they monitor its overall financial
performance. During this phase, they analyze the ability of the business to meet its expectations
from the financial institution. It is aimed at identifying the potential of the firm to tune operations
and i...


Anonymous
Just what I was looking for! Super helpful.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags