please help asap. Ratio Analysis

This is ARROW LTD

This is ROOT LTD

please put also answer here

put answers here.

I've already sent all the details. Thank you

Scenario: You are a bank loan manager and you have had two companies (Arrow and Root) come to your bank, each requesting a 6-month loan. You mu decide which company to give the loan to. Required: This file contains 4 tabs. The tabs "Arrow" and "Root" contain the respective financial statements for Arrow and Root. The "Student Submission" tab is where you will perform your calculations and written work. In the "Student Submission" tab, you will be calculating Liquidity, Solvency, and Profitability ratios for each company, stating what makes a ratio more successful, and comparing the results between the two companies to determine which company has stronger results. In columns D and E, prepare your calculations for Arrow and Root. When typing in your formulae, it is recommended to create links to the financial statement figures to avoid transposition errors. Please complete all calculations to 2 decimal places. In columns F, please indicate the units for each ratio calculation. There are drop-down menus available for you to select the units when you click into the cells in column F. If a ratio is uses % as a unit, please leave your calculation in whole number form (ie. 5.25 instead of 0.0525). In column G, comment on which company has a better ratio result based on your calculations (The ratios may be the same/comparable depending on your particular version of financial statements). Please note that when comparing the working capital ratios between companies, the companies need to be considered comparable in size. For the purposes of this assignment, assume that Arrow and Root are comparable. Part 2: (5 marks) Below your calculations, you will write a short 3-4 sentence conclusion relating to which company you would approve the loan to based on your calculations from Part 1. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2022 CANADIAN DOLLARS (millions of dollars) Revenue \begin{tabular}{l|r|} \hline Sales Revenue * & $1,421 \\ \hline Rent Revenue & 548 \\ \hline Interest Revenue & 398 \\ \hline Other Revenues & \\ \hline otal revenues & $334 \\ \hline \end{tabular} Operating expenses \begin{tabular}{lr} Cost of Goods sold & 352 \\ \hline Wages expense & 274 \\ \hline Salary expense & 142 \\ \hline Benefit expense & 187 \\ \hline Research and development expense & 52 \\ \hline Repairs and maintenance expense & 22 \\ & \end{tabular} * Denotes all of these sales were made on credit ARROW LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 CANADIAN DOLLARS (milions of dollars) ASSETS Current assets Shareholders' Equity \begin{tabular}{|l|r|r|r|} \hline 97 & Preferred Shares ** & 321 & 802 \\ 98 & Common Shares & 4,577 \\ 99 & Retained Earning & 4,700 \\ \hline 00 & Total Shareholders' Equity & \\ \hline 01 & & Total liabilities and shareholders' equity & 5,533 \\ \hline \end{tabular} There were no preferred dividends declared this year. *** The Weighted Average number of common shares outstanding are: 20,000,000 The Market price per common share is : 45 72 Intangible assets 103 104 ** There were no preferred dividends declared this year. 105 The Weighted Average number of common shares outstanding are: 25,000,000 106 The Market price per common share is : You are the loan manager at a local bank. Two companles have approached you about securing a 6-month loan. Based on your calculations above, please comment on the following: 5) In 2-3 sentences, describe the concern you would have if you found out that Arrow had upgraded its accounting system this year and the 139 company did not test the new accounting system to make sure that the system was processing data correctly? (1 mark) Scenario: You are a bank loan manager and you have had two companies (Arrow and Root) come to your bank, each requesting a 6-month loan. You mu decide which company to give the loan to. Required: This file contains 4 tabs. The tabs "Arrow" and "Root" contain the respective financial statements for Arrow and Root. The "Student Submission" tab is where you will perform your calculations and written work. In the "Student Submission" tab, you will be calculating Liquidity, Solvency, and Profitability ratios for each company, stating what makes a ratio more successful, and comparing the results between the two companies to determine which company has stronger results. In columns D and E, prepare your calculations for Arrow and Root. When typing in your formulae, it is recommended to create links to the financial statement figures to avoid transposition errors. Please complete all calculations to 2 decimal places. In columns F, please indicate the units for each ratio calculation. There are drop-down menus available for you to select the units when you click into the cells in column F. If a ratio is uses % as a unit, please leave your calculation in whole number form (ie. 5.25 instead of 0.0525). In column G, comment on which company has a better ratio result based on your calculations (The ratios may be the same/comparable depending on your particular version of financial statements). Please note that when comparing the working capital ratios between companies, the companies need to be considered comparable in size. For the purposes of this assignment, assume that Arrow and Root are comparable. Part 2: (5 marks) Below your calculations, you will write a short 3-4 sentence conclusion relating to which company you would approve the loan to based on your calculations from Part 1. 36 Profit (15) * Denotes all of these sales were made on credit ARROW LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 CANADIAN DOLLARS (millions of dollars) ASSETS Current assets \begin{tabular}{|l|l|r|r|} \hline 49 & Cash & $ & 1,935 \\ \hline 50 & Short-term investments & 661 \\ \hline 51 & Accounts receivable & 230 \\ \hline 52 & Inventory & 56 \\ \hline 53 & Spare parts and supplies inventory & 76 \\ \hline 54 & Prepaid Maintenance & 345 \\ \hline 55 & Prepaid expenses & 60 \\ \hline 56 & Total current assets & \\ \hline 57 & & $ \\ \hline \end{tabular} 58 Investments 131 Property plant, and equipment Land Office Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Vehicles Less: Accumulated depreciation Furniture Less: Accumulated depreciation \begin{tabular}{|r|r|} \hline$ & 56 \\ \hline 5,047 & 3,497 \\ \hline 2,244 & \\ \hline 461 & 1,783 \\ \hline 598 & \\ \hline 60 & 538 \\ \hline 110 & 72 \\ \hline 38 & \\ \hline \end{tabular} Total property, plant and equipment 5,946 Intangible assets Trademark Patent 5043 75 Total intangible assets 76 Total Assets 939,533 Liabilities and Shareholders' Equity Current Liabilities \begin{tabular}{|l|l|l|l|} \hline 81 & Accounts payable & 326 & \\ \hline 82 & Accrued liabilities & 115 & \\ \hline 83 & Unearned Revenue & 587 & \\ \hline 84 & Current portion of bank loan and mortgage payable & 484 \\ \hline 85 & Income Tax payable & 373 \\ \hline 86 & Total Current Liabilities & \\ \hline \end{tabular} 88 Non-current liabilities 89 Bank loan payable 90 Mortgage Payable Bond payable Total Non-current liabilities Total Liabilities 3,833 95 96 Shareholders' Equity 97 Preferred Shares 98 Common Shares 99 Retained Earning 100 Total Shareholders' Equity 5,700 101 102 Total liabilities and shareholders' equity 9,533 103 1044 There were no preferred dividends declared this year. 105 The Weighted Average number of common shares outstanding are: 20,000,000 The Market price per common share is: 45 36 Profit (15) * Denotes all of these sales were made on credit ROOT LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 CANADIAN DOLLARS (millions of dollars) 60 Property plant, and equipment \begin{tabular}{|l|r|r|} \hline 61 & Land & \\ \hline 62 & Office Building & $99 \\ \hline 63 & Less: Accumulated depreciation & 4,122 \\ \hline 64 & Equipment & 455 \\ \hline 65 & Less: Accumulated depreciation & 1,866 \\ \hline 66 & Vehicles & 453 \\ \hline 67 & Less: Accumulated depreciation & 643 \\ \hline 68 & Furniture & 151 \\ \hline 69 & Less: Accumulated depreciation & 217 \\ \hline 70 & Total property, plant and equipment & 36 \\ \hline \end{tabular} 5,832 72 Intangible assets 89 Non-current liabilities 90 Bank loan payable 91 Mortgage Payable 92 Bond payable 93 Total Non-current liabilities 94 Total Liabilities 95 96 Shareholders' Equity 97 Preferred Shares 98 Common Shares 99 Retained Earning 100 Total Shareholders' Equity 101 102 Total liabilities and shareholders' equity 103 104 There were no preferred dividends declared this year. 105 *** The Weighted Average number of common shares outstanding are: 106 The Market price per common share is : Notes: Please use Excel formulae to calculate your ratios. If a ratio is reported in % form, please present your solution in whole number form (ie. 5.25 instead of 0.0525). Cells have been formatted to display 2 decimal places. Please do not adjust the cell formatting. Days in Inventory: You are the loan manager at a local bank. Two companies have approached you about securing a 6-month loan. Based on your calculations above, please comment on the following: 3) Assess and comment on Arrow and Root's PROFITABILITY ratios. (1 mark) 5) In 2-3 sentences, describe the concern you would have if you found out that Arrow had upgraded its accounting system this year and the company did not test the new accounting system to make sure that the system was processing data correctly? ( 1 mark) Scenario: You are a bank loan manager and you have had two companies (Arrow and Root) come to your bank, each requesting a 6-month loan. You mu decide which company to give the loan to. Required: This file contains 4 tabs. The tabs "Arrow" and "Root" contain the respective financial statements for Arrow and Root. The "Student Submission" tab is where you will perform your calculations and written work. In the "Student Submission" tab, you will be calculating Liquidity, Solvency, and Profitability ratios for each company, stating what makes a ratio more successful, and comparing the results between the two companies to determine which company has stronger results. In columns D and E, prepare your calculations for Arrow and Root. When typing in your formulae, it is recommended to create links to the financial statement figures to avoid transposition errors. Please complete all calculations to 2 decimal places. In columns F, please indicate the units for each ratio calculation. There are drop-down menus available for you to select the units when you click into the cells in column F. If a ratio is uses % as a unit, please leave your calculation in whole number form (ie. 5.25 instead of 0.0525). In column G, comment on which company has a better ratio result based on your calculations (The ratios may be the same/comparable depending on your particular version of financial statements). Please note that when comparing the working capital ratios between companies, the companies need to be considered comparable in size. For the purposes of this assignment, assume that Arrow and Root are comparable. Part 2: (5 marks) Below your calculations, you will write a short 3-4 sentence conclusion relating to which company you would approve the loan to based on your calculations from Part 1. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2022 CANADIAN DOLLARS (millions of dollars) Revenue \begin{tabular}{l|r|} \hline Sales Revenue * & $1,421 \\ \hline Rent Revenue & 548 \\ \hline Interest Revenue & 398 \\ \hline Other Revenues & \\ \hline otal revenues & $334 \\ \hline \end{tabular} Operating expenses \begin{tabular}{lr} Cost of Goods sold & 352 \\ \hline Wages expense & 274 \\ \hline Salary expense & 142 \\ \hline Benefit expense & 187 \\ \hline Research and development expense & 52 \\ \hline Repairs and maintenance expense & 22 \\ & \end{tabular} * Denotes all of these sales were made on credit ARROW LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 CANADIAN DOLLARS (milions of dollars) ASSETS Current assets Shareholders' Equity \begin{tabular}{|l|r|r|r|} \hline 97 & Preferred Shares ** & 321 & 802 \\ 98 & Common Shares & 4,577 \\ 99 & Retained Earning & 4,700 \\ \hline 00 & Total Shareholders' Equity & \\ \hline 01 & & Total liabilities and shareholders' equity & 5,533 \\ \hline \end{tabular} There were no preferred dividends declared this year. *** The Weighted Average number of common shares outstanding are: 20,000,000 The Market price per common share is : 45 72 Intangible assets 103 104 ** There were no preferred dividends declared this year. 105 The Weighted Average number of common shares outstanding are: 25,000,000 106 The Market price per common share is : You are the loan manager at a local bank. Two companles have approached you about securing a 6-month loan. Based on your calculations above, please comment on the following: 5) In 2-3 sentences, describe the concern you would have if you found out that Arrow had upgraded its accounting system this year and the 139 company did not test the new accounting system to make sure that the system was processing data correctly? (1 mark) Scenario: You are a bank loan manager and you have had two companies (Arrow and Root) come to your bank, each requesting a 6-month loan. You mu decide which company to give the loan to. Required: This file contains 4 tabs. The tabs "Arrow" and "Root" contain the respective financial statements for Arrow and Root. The "Student Submission" tab is where you will perform your calculations and written work. In the "Student Submission" tab, you will be calculating Liquidity, Solvency, and Profitability ratios for each company, stating what makes a ratio more successful, and comparing the results between the two companies to determine which company has stronger results. In columns D and E, prepare your calculations for Arrow and Root. When typing in your formulae, it is recommended to create links to the financial statement figures to avoid transposition errors. Please complete all calculations to 2 decimal places. In columns F, please indicate the units for each ratio calculation. There are drop-down menus available for you to select the units when you click into the cells in column F. If a ratio is uses % as a unit, please leave your calculation in whole number form (ie. 5.25 instead of 0.0525). In column G, comment on which company has a better ratio result based on your calculations (The ratios may be the same/comparable depending on your particular version of financial statements). Please note that when comparing the working capital ratios between companies, the companies need to be considered comparable in size. For the purposes of this assignment, assume that Arrow and Root are comparable. Part 2: (5 marks) Below your calculations, you will write a short 3-4 sentence conclusion relating to which company you would approve the loan to based on your calculations from Part 1. 36 Profit (15) * Denotes all of these sales were made on credit ARROW LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 CANADIAN DOLLARS (millions of dollars) ASSETS Current assets \begin{tabular}{|l|l|r|r|} \hline 49 & Cash & $ & 1,935 \\ \hline 50 & Short-term investments & 661 \\ \hline 51 & Accounts receivable & 230 \\ \hline 52 & Inventory & 56 \\ \hline 53 & Spare parts and supplies inventory & 76 \\ \hline 54 & Prepaid Maintenance & 345 \\ \hline 55 & Prepaid expenses & 60 \\ \hline 56 & Total current assets & \\ \hline 57 & & $ \\ \hline \end{tabular} 58 Investments 131 Property plant, and equipment Land Office Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Vehicles Less: Accumulated depreciation Furniture Less: Accumulated depreciation \begin{tabular}{|r|r|} \hline$ & 56 \\ \hline 5,047 & 3,497 \\ \hline 2,244 & \\ \hline 461 & 1,783 \\ \hline 598 & \\ \hline 60 & 538 \\ \hline 110 & 72 \\ \hline 38 & \\ \hline \end{tabular} Total property, plant and equipment 5,946 Intangible assets Trademark Patent 5043 75 Total intangible assets 76 Total Assets 939,533 Liabilities and Shareholders' Equity Current Liabilities \begin{tabular}{|l|l|l|l|} \hline 81 & Accounts payable & 326 & \\ \hline 82 & Accrued liabilities & 115 & \\ \hline 83 & Unearned Revenue & 587 & \\ \hline 84 & Current portion of bank loan and mortgage payable & 484 \\ \hline 85 & Income Tax payable & 373 \\ \hline 86 & Total Current Liabilities & \\ \hline \end{tabular} 88 Non-current liabilities 89 Bank loan payable 90 Mortgage Payable Bond payable Total Non-current liabilities Total Liabilities 3,833 95 96 Shareholders' Equity 97 Preferred Shares 98 Common Shares 99 Retained Earning 100 Total Shareholders' Equity 5,700 101 102 Total liabilities and shareholders' equity 9,533 103 1044 There were no preferred dividends declared this year. 105 The Weighted Average number of common shares outstanding are: 20,000,000 The Market price per common share is: 45 36 Profit (15) * Denotes all of these sales were made on credit ROOT LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 CANADIAN DOLLARS (millions of dollars) 60 Property plant, and equipment \begin{tabular}{|l|r|r|} \hline 61 & Land & \\ \hline 62 & Office Building & $99 \\ \hline 63 & Less: Accumulated depreciation & 4,122 \\ \hline 64 & Equipment & 455 \\ \hline 65 & Less: Accumulated depreciation & 1,866 \\ \hline 66 & Vehicles & 453 \\ \hline 67 & Less: Accumulated depreciation & 643 \\ \hline 68 & Furniture & 151 \\ \hline 69 & Less: Accumulated depreciation & 217 \\ \hline 70 & Total property, plant and equipment & 36 \\ \hline \end{tabular} 5,832 72 Intangible assets 89 Non-current liabilities 90 Bank loan payable 91 Mortgage Payable 92 Bond payable 93 Total Non-current liabilities 94 Total Liabilities 95 96 Shareholders' Equity 97 Preferred Shares 98 Common Shares 99 Retained Earning 100 Total Shareholders' Equity 101 102 Total liabilities and shareholders' equity 103 104 There were no preferred dividends declared this year. 105 *** The Weighted Average number of common shares outstanding are: 106 The Market price per common share is : Notes: Please use Excel formulae to calculate your ratios. If a ratio is reported in % form, please present your solution in whole number form (ie. 5.25 instead of 0.0525). Cells have been formatted to display 2 decimal places. Please do not adjust the cell formatting. Days in Inventory: You are the loan manager at a local bank. Two companies have approached you about securing a 6-month loan. Based on your calculations above, please comment on the following: 3) Assess and comment on Arrow and Root's PROFITABILITY ratios. (1 mark) 5) In 2-3 sentences, describe the concern you would have if you found out that Arrow had upgraded its accounting system this year and the company did not test the new accounting system to make sure that the system was processing data correctly? ( 1 mark)