Carlos Santana is the accountant and business manager mrate Distribuidora. What hires you as a financial analyst
Question:
Carlos Santana is the accountant and business manager mrate Distribuidora. What hires you as a financial analyst and consultant in the request for a loan. The company is requesting a five-year loan at a bank known in the community. The loan is to cancel the promissory note - "payable notes" of 2012 and to finance current assets, especially inventory of merchandise. Has then the following financial statements are presented.
INDUSTRIES RATIOS: INDUSTRIES AVERAGE
CURRENT RATIO 1.50
ACID TEST RATIO 1.20
AVERAGE COLLECTION PERIOD 30 DAYS
INVENTORY TURN/OVER 10.20 TIMES
DEBTS TO TOTAL ASSETS 24.50%
LONG TERM DEBTS TO TOTAL CAPITALIZATION 33%
TIMES INTEREST EARNED 2.50 TIME
GROSS PROFIT MARGIN 26%
OPERATING PROFIT MARGIN 17%
NET PROFIT MARGIN 7.50%
TOTAL ASSETS TURN/OVER 2.14 TIMES
FIXED ASSETS TURN/OVER 1.40 TIMES
OPERATING EARNINGS RETURN ON INVESTMENT 11.4%
RETURN ON TOTAL ASSETS 4.00%
RETURN ON COMMON EQUITY 9.50%
REQUERIDO:
1. RATIO ANALYSIS: EXCELLENCE, GOOD, AVERAGE, POOR, and DEFICIENT (personal appraisal)
2. COMMON SIZE ANALYSIS
A. INCOME STATEMENTS
B. BALANCE SHEETS
3. FUND STATEMENT ANALYSIS
4. ANALYZE THE LOAN REQUEST. WOULD YOU GRANT THE LOAN? EXPLAIN.
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer