ABC is a limited liability family partnership, was established $8$ years ago among $4$

brothers who are fully involved in the business affairs. The company is involved in trade

of grocery and food items including fruits and vegetables, in addition to household items.

The partners are considering to enter into the food catering business i$.$e$.$ preparing food

products $($dining$)$ for parties and other ceremonies. In this respect, they approached their

bank for additional credit facilities as follows:

Working capital financing : $$200,000$

Fixed Assets Financing: $,$$$500,000$

Worth mentioning that due to this expansion, it is projected to have sales to increase in

the range of $15\%-20\%.$

In present time the company is dealing with one bank against $1^{st}$ rank real estate

mortgage over the company's premises for an amount of $$1,500,000.$ The company's

properties and installations are currently estimated at $$3\mathrm{.}2$ Mil.

Analyze the company's $2$ years financial position $($liquidity$,$ asset mgmt$,$ liability,

& profitability ratios$),$ and cash flow statement for $2023$

Assess the company's financial needs.

Identify the risk factors with respect to business, operating, industry, and finance.

Recommend the appropriate plans of action or decision to the relevant credit

committee. $($Remember that the company has been dealing with the bank for the

last $\mathrm{.}8$ years$).$

Hint: The new business is expected to enhance salls and will

increase by $20\%,$ the proft maigin of the new Bus.

will be $25\%.$ bcitor:

Unqualified $-$ Qualified

DATE $($Day$,$ Month, Year$)$

Amounts in

BALANCE SHEET

ABC CORPORATION

Period

Number of Months

Amounts

$,$ INCOME STATEMENT

QUESTIONS:

Construct the cash flow statement for $2023.$

Determine the following ratios

RATIO ANALYSIS

$2023$

$2022$

Liquidity

Current Ratio

Quick Ratio

Asset Management

DSO

INVENTORY TURNOVER

Fixed Assets Turnover

Total asset turnover

Leverage

Debt ratio $($DebuTotal Assets$)$

Times Interest Earned

Profitability

Net Profit Margin

Return on Assets

Return an Equity