P U MUULIL DUMLUPPI UAMULLIY 2.UU MULTI hort-term and long-term loans. You have three years historical annual financial statements and an leven month interim statement. The figures are even common sized for you. Please do the following: For all three year's annual statements calculate the Quick Ratio, Current Ratio, Total Debt to Net Worth, Total Debt to Tangible Net Worth, Accounts Receivable (Days' Sales Outstanding), Inventory (Days' Inventory Outstanding), Accounts Payable (Days' Payables Outstanding), and the Cash Conversion Cycle. Compare those to Industry Averages which as of 12/31/11 are: Quick Ratio 0.08, Current Ratio 1.50, Total Debt to Net Worth 2.00, Total Debt to Tangible Net Worth 2.00, Days' Sales Outstanding 47 days, Days' Inventory Outstanding 63 Days, Days' Payables Outstanding 40 days. Discuss the company's trends in those areas and how they compare to industry standards. Discuss the company's sales and net profit. Do not just tell me something went up or down, put thought into your answers. Upon review of the numbers, you meet will meet with the company's owners. What discussion will you have regarding their figures and don't just limit it to the calculations above What questions will you ask regarding the loan request? Will you require more information or not to make your decision about their request? If yes, what information. If you proceed with the loan, how would you outline any covenants and what collateral would you require if necessary. 2. Tesla, Inc. Review the financials and the newspaper article. I know it's a great concept but you are looking at it from a banker's point of view. This could be a big account for you and the bank and your personal commission for this loan would be huge. However, if the loan becomes a "Bad" loan by bank standards, you would be fired and the bank would require you to repay that commission. The company is showing consistent annual losses but demonstrated a modest profit for the quarter ending September 30, 2019. The company does not owe your bank any money at this time, however, they have annroached you for a $100 million loan to support operations. 12/31/2009 11/30/2012 12 12/31/2010 12 Unqualifd Caudle & Co JEN Annual Unqualifd Caudle & Co JEN Annual 12/31/2011 12 Unqualifd Caudle & Co JEN Annual Co. Prep'd JEN FY-To-Date Statement Date Months Covered Audit Method Accountant Analyst Strmt Type CURRENT ASSETS Cash Accts/Notes Rec-Trade Bad Debt Reserve (-) Total Accts/Rec-Net Accts/Noles Rec-Other Merchandise Inventory TOTAL CURRENT ASSETS NON-CURRENT ASSETS 2.0 139 BB3 94 778 100 578 1,020 100 783 2.9 18.3 2.1 16.2 185 879 100 779 3.6 170 1.9 15.0 100 920 19.0 1.9 17.1 0.4 3.110. 3,882 3,024 3,946 62.7 81.8 333464.4 3.507 4,447 298 83.0 55.3 82.8 Land 516 11.5 616 113 45 816 101 128 2.1 616 79 1.5 85 39 0.8 390 7.3 4.5 404 219 1.379 254 1,418 612 806 3.7 5.3 29.6 12.8 376 155 1.226 475 751 28.6 12.8 15.7 410 199 1.310 525 785 619 30 760 17 1 30 12 kle 72 72 15 2 911 8.80 4,826 4.793 18.2 1000 17.2 100.0 5181 100.0 922 5.359 100.0 Machinery & Equipment Furniture & Fixtures Leasehold Improvements Transportation Machinery & Equip Gross Fixed Assets Accumulated Deprec (-) Total Fixed Assets - Net A/R: Employees AIR: Shareholder Prepaids Operating Non-Cur Assets Intangibles - Goodwill Intangibles - Other Total Intangibles - Net TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Overdrafts ST Loans Payable-Bank CPLTD-Bank Accounts Payable-Trade Other Accruals Other Taxes Payable Total Accrued Liabilities Income Taxes Payable TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long Term Debt-Bank Deferred Fed Inc Tax LTP TOTAL NON-CURRENT LIABS TOTAL LIABILITIES NET WORTH Common Stock Retained Earnings Treasury Stock ) TOTAL NET WORTH TOTAL LIABS & NET WORTH 632 2,277 47.5 1.970 751 11.8 15.7 532 1,157 21.9 2.2 40.8 11.0 24.0 3.8 14.7 5.6 291 1,004 19.4 777 14.5 185 375 1,051 104 104 27 3.663 22 185 110 375 83 0.8 0.6 29 2.460 2.336 334 342 7.0 04 7.3 83.8 04 352 4.015 04 1.865 11 1.366 4.325 35.8 0.2 36.0 835 1,838 1,839 4.175 3.974 823 100 767 2.1 100 1.9 15.9 770 100 1,109 1.9 20.7 15 15 14.5 0.3 16.2 100.0 03 4.793 14.9 03 16.5 100.0 177 100.0 4.826 8.55 5.181 1.194 5.369 222 100.0 12/31/2009 11/30/2012 Co.Prep'd Statement Date Months Covered Audit Method Accountant Analyst Stmt Type Sales Revenues Unqualifd Caudle & Co JEN Annual 8,303 100.0 12/31/2010 12 Unqualifd Caudle & Co JEN Annual 10.097 12/31/2011 12 Unqualifd Caudle & Co JEN Annual 10,505 100.0 JEN FY-TO-Date 10,086 100.0 100.0 Cost of Sales/Revenues GROSS PROFIT 6,260 3,837 62.0 38.0 6.598 3,907 62.8 37.2 6.173 3,913 612 38.8 3,422 33.6 3,065 127 74 30.4 1.3 0.7 3.254 32.3 148 1.5 General & Admin Expense Officers' Compensation Depreciation Amortization Bad Debt Expense TOTAL OPERATING EXPENSE NET OPERATING PROFIT 98 3,364 473 1.0 33.3 4.7 296 2.0 (296) (2.0) 210 2.0 (210) (2.0) 123 1.2 (123) (1.2) Interest Expense (-) Interest Income Total Interest Inc(Exp) Gain(Loss) on Asset Sale TOTAL OTHER INCOME (EXP) PROFIT BEFORE TAXES Current Income Tax NET PROFIT Todos 1. Lighting, Inc. You are a business development/loan officer for a bank and have been approached by the company for a loan. The loan purpose is finance a $1 million inventory loan in line with the company's projected sales growth. The company already owes the bank approximately $2.86 million in short-term and long-term loans. You have three years historical annual financial statements and an eleven month interim statement. The figures are even common sized for you. Please do the following