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QUESTION

Prepare an analysis of the assigned company (1500 - 2,000 words) in order to secure a loan for the company. The loan will increase the company's total liabilities by 3%.The contents of the project inc

Prepare an analysis of the assigned company (1500 - 2,000 words) in order to secure a loan for the company. The loan will increase the company's total liabilities by 3%.The contents of the project include the following:

1.Discuss the loan amount and how you plan to use the loan proceeds.

2.Use the Excel Spreadsheet provided and complete the following.

  • a.Prepare a five year vertical analysis of the company’s income statement.
  • b.Prepare a projected income statement for 2020 and 2021 assuming sales increase by 3% and 6%.
  • c.Compute the ratios listed with the income statement.
  • d.Compute the ratios listed with the balance sheet.
  • 3.Using the results of your spreadsheet, what questions would you ask the CFO of the company?Explain.

The assigned company, spreadsheet, detailed instructions, and guidance are provided during week three.see the following and complete the attached excel sheet

Financial Analysis:

1. Open the Excel spreadsheet provided.Prepare a vertical analysis of Bridgford’s income statement.Enter the percentages in columns C, E, G, I and K.For additional information regarding vertical analysis, please review the following.

Vertical Analysis

2.Prepare a projected income statement assuming sales increase by 3% in 2020 and 6% in 2021.

  1. Average your vertical analysis percentages for each income statement account and enter the results in column L, rows 5 - 11.Example:Add columns C, E, G, I and K and divide by 5. (64.07 60.58 63.17 67.57 67.34)/5=64.55%.Column L, row 5 = 64.55%.
  2. Enter your projected sales number in columns M & N, row 4.
  3. Columns M and N:Multiply projected sales by the average percentage for each income statement account.

3.Ratio Computations.Use Excel formulas to calculate financial ratios listed with the income statement and balance sheet tabs.Calculate ratios for seven years (i.e. 2015-2021).Do not prepare ratios that require data from the 2020 and 2021 balance sheet.In this case, “N/A” is entered in the appropriate cell. For additional information regarding ratios, please review the following.

Financial Ratios

Note:If there is a discrepancy between the formula used in our text versus the formula included with the above link, use the formula incorporated with the above link.

4.Loan:The written section of the project includes a loan discussion and CFO questions and explanations.Use the following resources to complete your analysis.

Form 10-K

Corporate Annual and Earnings Report

5.Chief Financial Officer Questions:Using the results of your spreadsheet, what questions would you ask the CFO of Bridgford Foods?Explain.

Format your paper consistent with APA guidelines.Deliverables: Paper (MS Word) and Excel Spreadsheet. Review your Originality Report generated from SafeAssign.A new originality report is created with each attempt.Your last attempt is used for grading.

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