PC$-1\mathrm{.}2$: Contribute to team goals and objectives through active participation and collaboration.

The ability to interact and solve problems together, even at a distance, is a key skill in today's global organizations. You will analyze financial data and provide $$ memo to your loan officer as if you were a member on a team.

Instructions: Read the scenario, access the data worksheet below. Review the rubric which provides some tips on how to organize your team process. Then, as if you were a member of a team, respond to the items below.

Requirements:

This part of the assessment represents the primary steps of understanding the nature of cash flows in a business. Year$-$to$-$year comparative balance sheets are used in the analysis. After review and analysis of the data, you will prepare a business memo to outline the sources or uses of specific account cash flows and how these outcomes support your reasoning for approving or denying the loan. The analysis is based upon year$-$to$-$year changes of these specific balance sheet sections: Accounts Receivable, Inventory, Accounts Payable, Wages Payable, Plant Property and Equipment, and Long$-$term Debt.

You will:

Analyze financial data and present the rationale for what your loan committee $($you as a member of a team$)$ wants to do on the loan renewal request, and submit supporting documents.

Scenario: You are required to conduct an analysis of specific financial data of Bob Smith, Inc. Bob is an existing bank customer. When the loan to Bob was originally made in $2016,$ the bank required Bob to increase the YE $2016$ cash balance to at least $$70,000$ to qualify for the interest rate that the bank used for the original loan. This cash balance was required for the bank to make its target yield on the loan created. The Cash Flow Statement and Balance Sheet show an actual YE $2017$ cash balance of less than $$34,000.$

You will need to complete the $2017$ Cash Flow Statement. In addition, you will also prepare the "Common Sized Financial Statements" for the $2$ years shown.

This information allows you to substantiate the $2018$ loan denial or renewal request. You are acting as the loan committee of the bank and you will address an internal memo to the loan officer in charge of this loan facility giving the committee's decision on whether to approve the loan as is$,$ renew the loan with modifications, or deny the loan request. Be sure you move away from definitions to analysis. Additionally, you do not need to give definitions of balance sheet