Part C. Credit Analysis

Use the financial statements for Yellow Hammer to answer problems 1-3

Assess Yellow Hammers income statement by calculating the sales growth, EBITDA profitability (EBITDA/Sales) and coverage ratios using EBIT and EBITDA for each year. SHOW YOUR WORK (5 points)

Assess Yellow Hammers balance sheet by calculating the leverage ratios using of Debt/Capitalization and Debt/EBITDA. SHOW YOUR WORK (5 points)

If Yellow Hammer had reduced its DSO to 30 days in 2021 and used the funds saved to down short-term debt, what would be the new Debt/Cap and Debt/EBITDA ratios for 2021? SHOW YOUR WORK (5 points)

Gow Hammer Corporation Incisme Budine-1 Retalred Enmings Page 1 of 2262 words [x Englis. iUnited States] W Accessibil'ty: Irvest gate Gow Hammer Corporation Incisme Budine-1 Retalred Enmings Page 1 of 2262 words [x Englis. iUnited States] W Accessibil'ty: Irvest gate