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pls comeplete the ratio analysis and the memo examining the provided worksheet. Please answer questions a b and c in the memo. thank you so
pls comeplete the ratio analysis and the memo examining the provided worksheet. Please answer questions a b and c in the memo. thank you so much.
Due Date: January 20th Part A: Ratio Analysis Throughout the course, we have learned to complete the steps in the Accounting Cycle for sole proprietorship service and merchandising businesses. The next step is to analyze a business ability to obtain financing to expand their business. In this culminating: You will be provided with a worksheet for a business and you have been asked to prepare a ratio analysis and a memo of why you believe that this business deserves a loan. The Ratio and Percentage Analysis must include the following ratios: Liquidity Ratios: Current Ratio, Quick Ratio, and Working Capital Debit and Equity Ratios: Debt Ratio and Equity Ratio Profitability Ratio: Return on Assets Your ratio analysis needs to include the formula, calculations, and a short explanation about the importance of the ratio. Your ratio analysis can be prepared in a chart. To prepare your ratio analysis, you will need to extract the financial figures from the worksheet that has been prepared for you. Part B: The Memo Once you have completed your ratio analysis, you will need to create a one-page memo for the bank manager explaining why this business needs the loan. Your ratio analysis will provide evidence for your summary. Please see an example of a memo below. Your memo should include: A. Explain this business financial position using the ratios you have prepared. B. Explain why measuring this business ability to pay off short-term debts is critical to the success of this business. C. Explain how the business will use debt financing to improve and expand the business. Ratio Analysis \begin{tabular}{|l|l|l|} \hline Ratio & Calculation & Interpretation \\ \hline Current Ratio & & \\ \hline Quick Ratio & & \\ \hline Working Capital & & \\ \hline Debt Ratio & & \\ \hline Equity Ratio & & \\ \hline Return on Assets & & \\ \hline \end{tabular} Parts of a Memorandum What is a Memorandum (Memo)? - A memorandum is a written form of communication most often used in business. - It is used as a means of communication between executives and their employees. \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{} & Memo Title (usually with company's name) e.g., Banner Motor Company Memorandum \\ \hline To: & Use the person's first and last name. Courtesy titles are not used (e.g. Mr., Mrs., Ms.) \\ \hline From: & Your first and last name. \\ \hline Date: & Month, Day, Year (Use this date format) \\ \hline E., October 31,2023 \end{tabular} Step by Step Solution
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