The ability to interact and solve problems together even at a distance is a key skill in today's business environment In this part of the assessment you have the opportunity to analyze financial data and present the rationale to deny a loan renewal request besides getting some practice operating as you were a member of a team Instructions Read the scenario in the pdf provided below and then access the data spreadsheet and the denial letter template, as well as the grading rubric Then, as if you were a member of a team, respond to the checklist items below Checklist In a Microsoft Word document address the following as if you were a member of a team (although you alone are responsible for the deliverables) based on the scenario in the pdf provided Provide the goals, resources, and timelines for the team project Explain the communication protocol for team members Explain how you resolved the problems on page 8 of the pdf Access the denial letter template below and complete the loan denial letter As the loan officer, you must pass along the news in a business letter that is most professional and written in an objective manner Please use values in the letter whenever possible Access the data worksheet below and complete it Using analysis of the data sheet, explain in your letter why you are denying the loan renewal based on Accounts Receivable Accounts Payable Inventory LOAN DENIAL TEMPLATE First Bank and Trust Bank Loan Review Committee 369 Peters Road Stetson, MN 32905 June 18, 2018 Dear Mr Smith, Last week your loan request was presented to the banks loan committee The outcome of the committees vote resulted in a non renewal of the loan The loan committee focused on positive and negative year to year cash flow trends The more significant trends reviewed by the committee include Positive Trends Explain how these three following accounts increased year to year cash balances and what can be done to ensure the situation continues in the upcoming year Also comment on the concept applicable to the accounts as underlined Decrease in Accounts Receivable and the impact on year to year changes in cash and discussion on 2 10 net 30 payment terms Increase in Accounts Payable and the impact on year to year changes in cash and discussion on the filing of a mechanics lien Increase in Wages Payable and the impact on year to year changes in cash and the accounting concept of Expense Accruals Negative Trends Explain how the three following accounts reduced year to year cash balances and what can be done to correct the situation in the upcoming year Also comment on the concept applicable to the accounts as underlined Build up of Inventory and the impact on year to year changes in cash and discussion on Economic Order Quantity for Inventory management Purchase of Plant Property and Equipment and the impact on year to year changes in cash and Modified Accelerated Cost Recovery tax table Pay down of Long Term Debt Bank Note and the impact on year to year changes in cash and explain collateral and purpose of UCC1 filings Your Team will prepare a summary conclusion will briefly explain to Bob the two most important strategies he should employ to realize improved cash flow trends Your Team will explain, in a most cordial manner, that you look forward to meeting again in six months in hopes of a loan approval Regards, President, First Bank and Trust H 1 K M F 1 1 1 2 XYZ Bank told Bob to increase cash to $70,000 from 2016 to 2017 But cash increased from $16,566 in 2016 to just $33,411 in 2017, well short of $70,000 2016 Did Gasli Galgor Dou $ S 16 546 $ 16,845 Dental Letter Process to prepare 7 Eldren and thadhurash 5 918 788 3 10 3 56J You do bi 2 0 repart 75079) You bukwe ta puthand in 2004 balra Creer entry 00) The arrows present the 2016 to 2017 change in account balance The Team project focuses on the sk highlighted accounts These accounts correspond to the denial letter sent to the client For example, the balance for Accounts Receivable went down by 0563 An'assigned team member will analyze the significance of that change and present that information and more in the denial letter 352,220 Learn how Uw High 5 1 window for re 14 15 S 10 24 9125 2126 TH JURAJ LEO Radthe et bare er perio Un must be the unts were Sure Uwa 17 209 455) Youth te There are no meam members However, you must decide who would be assigned the tasks if you were a team depicted in the scenariu, MAOS 19 M 21 S 2 517 121 This one worksheet provides al the data you need to complete the project You may want to assign each team member a respective 'Explain 16,237 views New warisan S 3 SS 1421 what is the walmart L3 52 167 30 798 515 at 2 1 150 196 33 $ 1,353,573 345 2 533,021 35 022 520 The world andare 2014 plain lateral and LIOCI 156363) 176 102 119 723 H 1 K M F 1 1 1 2 XYZ Bank told Bob to increase cash to $70,000 from 2016 to 2017 But cash increased from $16,566 in 2016 to just $33,411 in 2017, well short of $70,000 2016 Did Gasli Galgor Dou $ S 16 546 $ 16,845 Dental Letter Process to prepare 7 Eldren and thadhurash 5 918 788 3 10 3 56J You do bi 2 0 repart 75079) You bukwe ta puthand in 2004 balra Creer entry 00) The arrows present the 2016 to 2017 change in account balance The Team project focuses on the sk highlighted accounts These accounts correspond to the denial letter sent to the client For example, the balance for Accounts Receivable went down by 0563 An'assigned team member will analyze the significance of that change and present that information and more in the denial letter 352,220 Learn how Uw High 5 1 window for re 14 15 S 10 24 9125 2126 TH JURAJ LEO Radthe et bare er perio Un must be the unts were Sure Uwa 17 209 455) Youth te There are no meam members However, you must decide who would be assigned the tasks if you were a team depicted in the scenariu, MAOS 19 M 21 S 2 517 121 This one worksheet provides al the data you need to complete the project You may want to assign each team member a respective 'Explain 16,237 views New warisan S 3 SS 1421 what is the walmart L3 52 167 30 798 515 at 2 1 150 196 33 $ 1,353,573 345 2 533,021 35 022 520 The world andare 2014 plain lateral and LIOCI 156363) 176 102 119 723

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The ability to interact and solve problems together even at a distance is a key skill in today's business environment. In this part of the

The ability to interact and solve problems together even at a distance is a key skill in today's business environment. In this part of the assessment you have the opportunity to analyze financial data and present the rationale to deny a loan renewal request besides getting some practice operating as you were a member of a team.

Instructions: Read the scenario in the pdf provided below and then access the data spreadsheet and the denial letter template, as well as the grading rubric. Then, as if you were a member of a team, respond to the checklist items below.

Checklist:

In a Microsoft Word document address the following as if you were a member of a team (although you alone are responsible for the deliverables) based on the scenario in the pdf provided:

-Provide the goals, resources, and timelines for the team project.

-Explain the communication protocol for team members.

-Explain how you resolved the problems on page #8 of the pdf.

Access the denial letter template below and complete the loan denial letter.

As the loan officer, you must pass along the news in a business letter that is most professional and written in an objective manner. Please use values in the letter whenever possible.

Access the data worksheet below and complete it.
Using analysis of the data sheet, explain in your letter why you are denying the loan renewal based on:

-Accounts Receivable

-Accounts Payable

-Inventory

LOAN DENIAL TEMPLATE:

First Bank and Trust

Bank Loan Review Committee

369 Peters Road

Stetson, MN 32905

June 18, 2018

Dear Mr. Smith,

Last week your loan request was presented to the banks loan committee. The outcome of the committees vote resulted in a non-renewal of the loan. The loan committee focused on positive and negative year to year cash flow trends. The more significant trends reviewed by the committee include:

Positive Trends

Explain how these three following accounts increased year to year cash balances and what can be done to ensure the situation continues in the upcoming year.

Also comment on the concept applicable to the accounts; as underlined.

Decrease in Accounts Receivable and the impact on year to year changes in cash and discussion on 2/10 net 30 payment terms
Increase in Accounts Payable and the impact on year to year changes in cash and discussion on the filing of a mechanics lien
Increase in Wages Payable and the impact on year to year changes in cash and the accounting concept of Expense Accruals

Negative Trends

Explain how the three following accounts reduced year to year cash balances and what can be done to correct the situation in the upcoming year.

Also comment on the concept applicable to the accounts; as underlined.

Build up of Inventory and the impact on year to year changes in cash and discussion on Economic Order Quantity for Inventory management
Purchase of Plant Property and Equipment and the impact on year to year changes in cash and Modified Accelerated Cost Recovery tax table
Pay down of Long Term Debt: Bank Note and the impact on year to year changes in cash and explain collateral and purpose of UCC1 filings

Your Team willprepare a summary conclusion will briefly explain to Bob the two most important strategies he should employ to realize improved cash flow trends.

Your Team willexplain, in a most cordial manner, that you look forward to meeting again in six months in hopes of a loan approval.

Regards,

President, First Bank and Trust

image text in transcribed

H 1 K M F > 1 1 1 2 XYZ Bank told Bob to increase cash to $70,000 from 2016 to 2017 But cash increased from $16,566 in 2016 to just $33,411 in 2017, well short of $70,000. 2016 Did Gasli Galgor Dou! $ S 16.546 $ 16,845 Dental Letter Process to prepare 7 Eldren and thadhurash 5 918.788 3 10 3&56J You do bi 2.0 repart 75079) You bukwe ta puthand in 2004 balra Creer entry 00) The arrows present the 2016 to 2017 change in account balance. The Team project focuses on the sk highlighted accounts. These accounts correspond to the denial letter sent to the client For example, the balance for Accounts Receivable went down by 0563. An'assigned team member** will analyze the significance of that change and present that information and more in the denial letter 352,220 Learn how Uw High 5 1 window for re 14 15 S 10 24.9125 2126 TH JURAJ LEO Radthe et bare er perio Un must be the unts were Sure Uwa 17 209.455) Youth te: There are no meam members. However, you must decide who would be assigned the tasks if you were a team depicted in the scenariu, MAOS 19 M 21 S 2.517.121 This one worksheet provides al the data you need to complete the project. You may want to assign each team member a respective 'Explain! . 16,237 views New warisan & S 3 SS 1421 what is the walmart ? L3 52.167 30 798.515 at 2 1.150.196 33 $ 1,353,573 345 2.533,021 35 022.520 The world andare 2014 plain lateral and LIOCI 156363) 176.102 119.723 H 1 K M F > 1 1 1 2 XYZ Bank told Bob to increase cash to $70,000 from 2016 to 2017 But cash increased from $16,566 in 2016 to just $33,411 in 2017, well short of $70,000. 2016 Did Gasli Galgor Dou! $ S 16.546 $ 16,845 Dental Letter Process to prepare 7 Eldren and thadhurash 5 918.788 3 10 3&56J You do bi 2.0 repart 75079) You bukwe ta puthand in 2004 balra Creer entry 00) The arrows present the 2016 to 2017 change in account balance. The Team project focuses on the sk highlighted accounts. These accounts correspond to the denial letter sent to the client For example, the balance for Accounts Receivable went down by 0563. An'assigned team member** will analyze the significance of that change and present that information and more in the denial letter 352,220 Learn how Uw High 5 1 window for re 14 15 S 10 24.9125 2126 TH JURAJ LEO Radthe et bare er perio Un must be the unts were Sure Uwa 17 209.455) Youth te: There are no meam members. However, you must decide who would be assigned the tasks if you were a team depicted in the scenariu, MAOS 19 M 21 S 2.517.121 This one worksheet provides al the data you need to complete the project. You may want to assign each team member a respective 'Explain! . 16,237 views New warisan & S 3 SS 1421 what is the walmart ? L3 52.167 30 798.515 at 2 1.150.196 33 $ 1,353,573 345 2.533,021 35 022.520 The world andare 2014 plain lateral and LIOCI 156363) 176.102 119.723