4...explain?to Bob three actions that would continually increase cash flow and ?correct the situation.? Explain that you look forward to meeting again in the 6 months in hopes of a loan approval.

RC 5-15 MT 480 Case Study Bob Smith Loan Review Data for Teams Comparative Balance Sheets and Cash Flow Statement Worksheet ASSETS Cash and marketable securities Accounts receivable Inventory Other current assets Total current assets Gross Plant and equipment Less: Accumulated depreciation $ $ $ $ $ $ $ 2014 33,411 260,205 423,819 41,251 758,686 1,931,719 (419,044) $ $ $ $ $ $ $ 2013 16,566 318,768 352,740 29,912 717,986 1,609,898 (206,678) Net plant and equipment Goodwill and other assets Total Assets $ $ $ 1,512,675 382,145 2,653,506 $ $ $ 1,403,220 412,565 2,533,771 LIABILITIES AND EQUITY Accounts payable and accruals $ 378,236 $ 332,004 Notes payable Accrued income taxes Total current liabilities $ $ $ $ 14,487 21,125 413,848 $ $ $ $ 7,862 16,815 356,681 Long-term debt Total liabilities Preferred stock Common stock (10,000 shares) Additional paid in capital Retained earnings Less: Treasury stock Total common equity Total Liabilities and Equity $ $ $ $ $ $ $ $ $ 679,981 1,093,829 10,000 975,465 587,546 (13,334) 1,559,677 2,653,506 $ $ $ $ $ $ $ $ $ 793,515 1,150,196 10,000 975,465 398,110 1,383,575 2,533,771 In addition, it was reported that the company had a net income of $3,155,848 and depreciation expenses were equal to $212,366 during 2014. Net Income $3,155,848 Depreciation $212,366 Dividends Paid -$2,966,412 ta for Teams ent Worksheet The bank told Bob to increase cash to $70,000 from 2013 to 2014. But cash increased from $16,566 in 2013 to just $33,411 in 2014, well short of $70,000, ... why... Cash Up or Down $ 16,845 $ 58,563 EXPLAIN $ (71,079) EXPLAIN $ (11,339) $ (40,700) (321,821) 212,366 $ $ (109,455) EXPLAIN 30,420 (119,735) $ 46,232 EXPLAIN $ $ $ 6,625 EXPLAIN 4,310 57,167 $ (113,534) EXPLAIN (56,367) 0 0 189,436 (13,334) 176,102 119,735 depreciation expenses were Explain how the six highlighted accounts impacted cash flow from one year to the next. The accounts either added or reduced the cash balance from one year to the next. I.e., the accounts were either a Source or Use of cash. This one worksheet provides all the data you need to complete the project. You may want to assign each team member a respective 'Explain'. Unit 3 [MT480: Corporate Finance] Team Assignment Outline Business Letter: Bank Loan Review Dear Mr. Smith, Last week your loan request was presented to the bank's loan committee. The outcome of the committee's vote resulted in a non-renewal of the loan. The loan committee focused on the following issues...Students completes the following... 1.... summarize...focus on \"the\" one account that significantly \"reduced\" cash balances. Explain to Bob how this one account could be the main reason the required $70,000 cash balance was not maintained. 2...explain...note two other accounts that dramatically reduced cash flow/growth and are of particular concern to you. Express an idea that might immediately improve this matter. 3...recognize...a couple of accounts that did increase cash flow. Make a specific note to Bob regarding how and why these accounts lead to inflows of cash; 4...explain...to Bob three actions that would continually increase cash flow and \"correct the situation.\" Explain that you look forward to meeting again in the 6 months in hopes of a loan approval. Regards, Bank Loan Review Team (List all participating team members)