Introduction: You have been asked to analyze the financial statements of Anandam Manufacturing Company and recommend whether or not the bank should lend money to Anandam.

1 Ratio analysis

Ratios	Anandam Ratio 2012-13	Anandam Ratio 2013-14	Anandam Ratio 2015-16	Industry Average Ratio
Current ratio
Inventory turnover	x
Debt to Equity ratio
Gross profit ratio
Interest coverage
Net profit ratio (calculations will give you this ratio for 2013-14 and 2015-16)

2 Conclusions from the ratio analysis

Current ratio
Inventory turnover
Debt to Equity ratio
Gross profit ratio
Net profit ratio
Interest coverage

3 Your recommendation

Make the loan
Dont make the loan

Why? Refer to your financial analysis, above.