what is your final recommendation to the Business Loans Manager of Provenance Banking Corporation: an approval or denial of the loan to each and/or both firms? Discuss the basis for your recommendation. Ensure you base your recommendation only on the change in the ratios for the two stated financial years (i.e., 2021 and 2022).

 

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Appendix 2a (RIC) 2021 Inventories = 81,947,000.00 Average Daily COGS = COGS/365= 848,694,000.00/365= 2,325,189.041 Account Receivable = 111,316,000.00 Average Daily Sales = 927,719,000.00/365= 2,541,695.89 Account Payable= 169,752,000.00 Average Daily COGS =COGS/365=-848,694,000.0 0/365= 2,325,189.041 CCC Appendix 2b(RIC) 2022 Inventories = 117,131,000.00 Average Daily COGS= COGS/365= 949,523,000,00/365=2,601,4 23.877 Account Receivable = 127,889,000.00 Average Daily Sales = 1,049,086,000.00/365= 2,874,208.219 Account Payable= 206,626,000.00 Average Daily COGS= COGS/365= 949,523,000,00/365=2,601,4 23.877 CCC Calculation Inventory Days = 81,947,000.00/2,325,189.041 Account Receivable Days = 43.8 111,316,000.00/2,541,695.89 1 Account Payable Days = 169,752,000.00/2,325,189.04 73.0 =35.2+43.8-73.0 Calculation Inventory Days = 117,131,000.00/2,601,423.87 7 Days 9 35.2 Account Payable Days = 206,626,000.00/ 2,601,423.877 = 45.0+44.5-79.4 6 days Account Receivable Days = 44.5 127,889,000.00/2,874,208.21 Days 45.0 79.4 10.1 days Appendix 2a (RIC) 2021 Inventories = 81,947,000.00 Average Daily COGS = COGS/365= 848,694,000.00/365= 2,325,189.041 Account Receivable = 111,316,000.00 Average Daily Sales = 927,719,000.00/365= 2,541,695.89 Account Payable= 169,752,000.00 Average Daily COGS =COGS/365=-848,694,000.0 0/365= 2,325,189.041 CCC Appendix 2b(RIC) 2022 Inventories = 117,131,000.00 Average Daily COGS= COGS/365= 949,523,000,00/365=2,601,4 23.877 Account Receivable = 127,889,000.00 Average Daily Sales = 1,049,086,000.00/365= 2,874,208.219 Account Payable= 206,626,000.00 Average Daily COGS= COGS/365= 949,523,000,00/365=2,601,4 23.877 CCC Calculation Inventory Days = 81,947,000.00/2,325,189.041 Account Receivable Days = 43.8 111,316,000.00/2,541,695.89 1 Account Payable Days = 169,752,000.00/2,325,189.04 73.0 =35.2+43.8-73.0 Calculation Inventory Days = 117,131,000.00/2,601,423.87 7 Days 9 35.2 Account Payable Days = 206,626,000.00/ 2,601,423.877 = 45.0+44.5-79.4 6 days Account Receivable Days = 44.5 127,889,000.00/2,874,208.21 Days 45.0 79.4 10.1 days