History: CHI Excavating Inc. (CHI) began operations in Kingsville, Ontario in 1999 as an Excavating Company and in 2010 began a small asphalt plant to pave roads to complement their excavating business. The company has had very profitable years and not profitable years over its 23 years in operation. The sole owner Danny Money started the company when he was 26 years old and is now 49 years old. The owner has four children and on only one has stayed and worked with the company, since her graduation from the MOM program in 2015. Jenny Likes Money is the CFO and would like to finally take over the company. She has some big plans for the company to grow outside of the County of Essex. However, some bad decisions the past two years has made the company much weaker and needs to provide interim financial statements to the bank for the first time since 2008. The debt for both short-term and long-term has increased the past few years due to the poor results. The results are based on some decisions, Danny made on projects that turned out to be very bad for the company. The losses for the past two years were such that the bank has asked for an interim statement to be completed by their external accountant, Greedy LLP Chartered Accountants, (GRY). The financial statements for the past two years are included in Exhibit 1. You will also find a trial balance sheet for the current year as Exhibit 2. Exhibit 3 are notes from the financial statements. Current Environment: The company is doing better currently but is focusing on the following key items. The biggest issue the company is facing besides rising costs like fuel and insurance is labour. Over the years the company has always had excellent staff but since COVID, that has changed as many of the older staff retired and some new staff have struggled to be as productive and efficient as the previous employees. Summary: Angeloo Talks to Much, the principal at GRY has asked you, Newbie MOM Student Accountant to put together the Balance Sheet and Income Statement for the current year. This company is a private enterprise and has chosen to prepare the statements using ASPE. Once you have produced inhouse financial statements, you need to also an analysis based on financial and non-financial factors

Use the following financial tools: Net Profit Margin Receivable Turnover Ratio Days to Collect Debt to Asset Ratio Times Interest Earned Ratio The non-financial tools should include an analysis of the key changes from the past results to the current interim results. Include reasoning for the changes and provide some potential solutions the company needs to consider in order to maintain profitability going forward. Use all the information that has been provided to you in BSMM 8110 and any other tools to enhance your report. You are looking for a promotion and this report will help you get it, if done right.

Exhibit 1 1. Taxes Rates as follows: Under $500,000 rate is 15.5% From $500,000 to $1,000,000 rate is 22.5% From $1,000,001 to $1,500,000 rate is 27.5% 2. Other Revenue: Asphalt Paving When is enough enough? History: CHI Excavating Inc. (CHI) began operations in Kingsville, Ontario in 1999 as an Excavating Company and in 2010 began a small asphalt plant to pave roads to complement their excavating business. The company has had very profitable years and not profitable years over its 23 years in operation. The sole owner Danny Money started the company when he was 26 years old and is now 49 years old. The owner has four children and on only one has stayed and worked with the company, since her graduation from the MOM program in 2015. Jenny Likes Money is the CFO and would like to finally take over the company. She has some big plans for the company to grow outside of the County of Essex. However, some bad decisions the past two years has made the company much weaker and needs to provide interim financial statements to the bank for the first time since 2008. The debt for both short-term and long-term has increased the past few years due to the poor results. The results are based on some decisions, Danny made on projects that turned out to be very bad for the company. The losses for the past two years were such that the bank has asked for an interim statement to be completed by their external accountant, Greedy LLP Chartered Accountants, (GRY). The financial statements for the past two years are included in Exhibit 1. You will also find a trial balance sheet for the current year as Exhibit 2. Exhibit 3 are notes from the financial statements. Current Environment: The company is doing better currently but is focusing on the following key items. The biggest issue the company is facing besides rising costs like fuel and insurance is labour. Over the years the company has always had excellent staff but since COVID, that has changed as many of the older staff retired and some new staff have struggled to be as productive and efficient as the previous employees. Summary: Angeloo Talks to Much, the principal at GRY has asked you, Newbie MOM Student Accountant to put together the Balance Sheet and Income Statement for the current year. This company is a private enterprise and has chosen to prepare the statements using ASPE. Once you have produced inhouse financial statements, you need to also an analysis based on financial and non-financial factors. Use the following financial tools: Net Profit Margin Receivable Turnover Ratio Days to Collect Debt to Asset Ratio Times Interest Earned Ratio The non-financial tools should include an analysis of the key changes from the past results to the current interim results. Include reasoning for the changes and provide some potential solutions the company needs to consider in order to maintain profitability going forward. Use all the information that has been provided to you in BSMM 8110 and any other tools to enhance your report. You are looking for a promotion and this report will help you get it, if done right