how do I create an assessment for each of the investment proposals included below, with a rationale that is aligned with the SWOT analysis and financial statement ratio analysis using liquidity ratios, debt ratios, profitability, and asset utilization ratioson the companies performance in the past 5 years . Recommend if ACH should go forward with any of the proposed investments based on this analysis.

Mary is considering partnering with a frozen yogurt company to introduce more frozen treats on its menus, similar to what the Canadian company Second Cup did with its partnership with Pinkberry. Stores would have to be remodeled to accommodate the extra space required to hold the yogurt bins, and there would be more capital expenditures required for additional refrigeration equipment. The frozen yogurt company, which has many low-fat options, has exploded in popularity over the last year, with lineups that span for blocks for its few locations and several millions of engaged follows on social media. The frozen yogurt company is backed by several private equity investors and has significant amounts of cash to invest in the partnership.

The second investment proposal would be to purchase a coffee roasting plant in Puerto Rico. ACH has been considering vertical integration in order to get more control over its costs, and to lessen its exposure to Asian suppliers under the current trade environment. Puerto Rican coffee beans are becoming more and more associated with premium products due to their exotic taste. Tropical storms have been wreaking havoc in the territory, causing some businesses to sell at attractive prices in order to rapidly exit the industry.

Mary wants you to assess how these two proposals align with the strategy of ACH, using your SWOT analysis and ratio analysis, and, ultimately, to make a recommendation whether to accept none, one, or both of the proposals.

Strenghts

• America runs on coffee. The demand for coffee is robust and growing.
• The aggressive and focused marketing campaign that the coffee shop will run has goals and strategies to create immediate impact towards the market and its participants.
• Recent cost cutting, restructuring and new developing technologies in the caf industry greatly decreases overhead cost.
• The coffee shop will offer a variety of products in addition to the hot cup of coffee which will lead more customers in the door.
• The team attracted to build and manage the company has the experience and resume to build a sustainable and profitable coffee shop and caf brand.
• The coffee shop caf will offer state of the art amenities including flat screen TVs and free Wi-Fi for our customer's leisure.
• The area and location the Company founders have scouted has heavy drive by traffic and will lead to more sales when proper signage is placed on the real estate.
• The neighborhood is a close nit community and grabbing our first core group of customers will lead to word of mouth marketing and more customers.

Weaknesses

• Poor consumer confidence, uncertainty and pessimism in new startups, new cafes and new coffee shops are not only valid but also fueled by the media and competitor marketing.
• Established coffee shops can take away or limit our potential customer given their goodwill and customer rapport.
• As a newer caf and/or coffee shop, potential consumers and customers have not heard of our delicious exotic coffee flavors, coffee beans, expressos and lattes; so proper marketing will need to be established to assure our target demographic knows and understands our products.
• Owners and decision makers at large companies, like restaurant chain suppliers, grocery chains and corporations, may be hard to get in touch with, which will make it harder to course quality products at an affordable price.
• Our financial resources, such as funding, sources of income and investment opportunities limit our reach and impact in the market.
• The Economic hardships in America today may lead to potential limits on growth capital as sought and decrease the amount of money consumers have to spend daily of coffee.
• The first few initial shipments of supplies (coffee, cups, napkins, ingredients, etc) can be hectic and will lead to unexpected use of resources, as the procedures of buying wholesale are unfamiliar.

Opportunities

• Local competition is not open late and opening for later hours can lead to increased market share for the caf.
• No better time to start a business with low interest rates for business loans and affordable prices in commercial real estate leases.
• The proper use of the internet will allow us to market our coffee shop to a greater number of potential customers with less marketing dollars.
• Big companies, government agencies and other commercial businesses that require coffee & bakery goods can lead to an additional stream of income via delivery services or catering services.
• The online market & ecommerce can potentially increase our market share exponentially by selling our ingredients, branded items, beverages and foods over the internet.
• Ability to innovate that doesn't seem necessary in a busy, thriving market - allows us to modify policy, behavior, and structure, and to redeploy resources to deliver new kinds of value not thought of by our potential customer base.
• With a product such as coffee, we can potentially expand our brand and products by selling raw coffee beans, branded coffee makers, and other coffee related products for higher profit margins than coffee.
• Potential rapport with our customers can lead to increase in market shares due to customer loyalty and word of mouth marketing.
• New flavors and the opening of new markets and industries within coffee can increase our market share and demand for coffee in general.

Threats

• New marketing strategies and tactics by established coffee shops & investors can limit our sales and potential market share.
• Troubled economy, deficits, long-term bail-out consequences, failing companies may lead to difficult financing situations or a stop on investment capital.
• Emergence of new coffee shops who are already in business with our potential clients deliver a compelling value proposition for customers not to switch to our brand.
• Tightening of the credit market can lead to fewer purchases by our potential customers.
• A bad harvest or poor harvest from our supplier can directly affect our goodwill and product and slow down our supply chain.
• The rising fuel price can lead to lower profit margin or increase in logistics costs, which in turn can lead to higher coffee prices and less sales.
• Potential unforeseen issues can greatly deplete our cash account and profits.
• High cost for maintenance of FDA regulations can lead to unpredicted expenses or liability to our Company.
• Economy of surrounding areas can directly impact the possible customer and revenue stream of our coffee shop caf.

Intangible Assets $50.00 $60.00 $60.00 $70.00 $70.00 Total Long-Term Assets $167.00 $190.00 $191.00 $199.00 $186.00 Total Assets $232.00 $258.13 $283.66 $309.31 $304.97 Liabilities Account Payable $44.00 $50.80 $60.00 $70.00 $75.00 Accrued Liabilities $12.40 $15.00 $20.00 $25.00 $30.00 Current Liabilities $56.40 $65.80 $80.00 $95.00 $105.00 Long-term Debt $70.00 $100.00 $120.00 $140.00 $160.00 Total Liabilities $126.40 $165.80 $200.00 $235.00 $265.00 Shareholder's Equity Common Shares $50.00 $50.00 $50.00 $50.00 $50.00 Preferred Shares $10.00 $10.00 $10.00 $10.00 $10.00 Retained Earnings $45.60 $32.33 $23.66 $14.31 $(20.03] Total Equity $105.60 $92.33 $83.66 $74.31 $39.97 Total Liabilities & Equity $232.00 $258.13 $283.66 $309.31 $304.97America Coffee House Statement of Earnings (Income Statement) For the Year Ended Dec 31, 2017 In millions of dollars 2013 2014 2015 2016 2017 Revenue N. America Retail $50.00 $80.00 $120.00 $140.00 $110.00 Wholesale $20.00 $18.00 $18.00 $17.00 $18.00 International $10.00 $12.00 $14.00 $17.00 $21.00 Total Revenue $80.00 $110.00 $152.00 $174.00 $149.00 Cost of Goods Sold (COGS) $35.20 $51.70 $72.96 $85.26 $75.99 Gross Profit $44.80 $58.30 $79.04 $88.74 $73.01 Operating Expenses Advertising & Marketing $5.00 $5.00 $8.00 $8.00 $10.00 General & Administrative $9.00 $13.00 $15.00 $17.00 $20.00 Research, IT, & Development $3.00 $3.00 $3.00 $3.00 $3.00 Depreciation & Amortization $3.00 $7.00 $15.00 $22.00 $33.00 Total Operating Expenses $20.00 $28.00 $41.00 $50.00 $66.00 Operating Income $24.80 $30.30 $38.04 $38.74 $7.01 Interest Expense $5.60 $8.00 $9.60 $11.20 $12.80 Pre-tax Income $19.20 $22.30 $28.44 $27.54 $ (5.79) Income Taxes $4.80 $5.58 $7.11 $6.89 $(1.45) Net Income (Loss) $14.40 $16.73 $21.33 $20.66 $(4.34) America Coffee House Statement of Financial Position (Balance Sheet) At Dec 31, 2017 In millions of dollars Assets 2013 2014 2015 2016 2017 Cash $30.00 $22.13 $25.16 $22.81 $6.47 Accounts Receivable $20.00 $26.00 $32.50 $37.50 $47.50 Inventory $15.00 $20.00 $35.00 $50.00 $65.00 Total Current Assets $65.00 $68.13 $92.66 $110.31 $118.97 Gross Property Plant & Equipment $164.00 $184.00 $200.00 $220.00 $240.00 Less: Accumulated Depreciation $(47.00) $(54.00) $(69.00) $(91.00) $(124.00) Net Property, Plant, & Equipment $117.00 $130.00 $131.00 $129.00 $116.00