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Please help with the case study comprehensive question for 5-36. Pictures Below. You are the loan officer at QIB responsible for determining whether BBCC's business

Please help with the case study comprehensive question for 5-36. Pictures Below.

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You are the loan officer at QIB responsible for determining whether BBCC's business is strong enough to be able to repay the loan. To do so, accomplish the following: a. Calculate the following ratios for 2017 and 2018, compare with the industry averages shown in parentheses, and indicate if the company is doing better or worse than the industry and whether the performance is improving or deteriorating in 2018 as compared to 2017. i. Gross profit margin (50 percent) ii. Operating profit margin (15 percent) iii. Net profit margin (8 percent) iv. Return on assets (10 percent) V. Return on equity (20 percent) vi. Current ratio (1.5) vii. Quick ratio (1.0) viii. Debt to total asset ratio (0.5) ix. Times interest earned (25) X. Average collection period (45 days) xi. Inventory turnover (8) xii. Total asset turnover (1.6) b. Calculate the EVA and MVA for BBCC, assuming that the firm's income tax rate is 40 percent, the weighted average rate of return expected by the suppliers of the firm's capital is 10 percent, and the market price of the firm's stock is $20. There are 1.2 million shares outstanding. c. Discuss the financial strengths and weaknesses of BBCC. bonite d. Determine the sources and uses of funds and prepare a statement of cash flows for 2018. e. Compare and comment on the financial condition as evident from the ratio analysis and the cash flow statement. f. Which ratios should you analyze more critically before recommending granting of the loan and what is your recommendation? Refer to the following financial statements of Bongo Comics Group. 4.1 5-36. Bikini Bottom Construction Company (BBCC) manufactures various types of high- quality punching and deep-drawing press tools for kitchen appliance manufacturers. Pearl, the finance manager of BBCC, has submitted a justification to support the application for a short-term loan from the Queensville Interstate Bank (QIB) to finance increased sales. The consolidated income statement and balance sheet of BBCC, submitted with the justification to QIB, follow. 8e Templates Excel. BBCC Income Statement for 2017 and 2018 (000 dollars) 2017 Sales $40,909 Cost of Goods Sold 20,909 Gross Profit 20,000 Selling and Administrative Expenses 11,818 Depreciation Expense 2,000 Operating Income (EBIT) 6,182 Interest Expense 400 Earnings before Taxes (EBT) 5,782 Income Taxes (@ 25%) 1,446 Net Income (NI) 4,336 Dividends Paid (@20%) 694 2018 $45,000 23,000 22,000 13,000 3,000 6.000 412 5,588 1,397 4.191 671 BBCC Balance Sheet as of End of 2017 and 2018 (000 dollars) 2017 2018 Assets: Cash Accounts Receivable (net) Inventory Plant and Equipment (gross) Less: Accumulated Depreciation Plant and Equipment (net) Land $ 2,000 6,000 5,000 26,000 10,000 16,000 1,000 $1,800 7,600 5,220 31,000 13,000 18,000 1,000 Liabilities: Accounts Payable Notes Payable Accrued Expenses Bonds Payable 2,000 3,000 3,000 4,000 2,600 3,300 3,100 4,000 Stockholders' Equity: Common Stock Retained Earnings 4,000 4,000 14,000 16,620 ial Concepts in Finance See BBCC Case on pages 110 and 111 in your text (problem 5-36) On page 111 complete items: ai xii. ALSO, construct a Common Sized Income Statement for the two years presented.. Complete part c (Discuss the financial strengths and weaknesses of BBCC). NOTE: your discussion may NOT contain the words , I think or I feel. Your final statement is your recommendation to approve or reject the loan. Begin this statement with : Based upon my analysis this loan should be (not be)made. I recommend this because

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