Question
The credit manager at Bank of New York has just received the income statement and balance sheet for Cosmo, Inc. the year ended December 31,2019.
The credit manager at Bank of New York has just received the income statement and balance sheet for Cosmo, Inc. the year ended December 31,2019. The bank requires the firm to report its earnings performance and financial position quarterly as a condition of a loan agreement. The bank's credit manager must prepare two key financial statements based on the information sent by Cosmo, Inc. This will be passed on to the commercial loan officer assigned to this account, so that he may review the financial condition of the firm. Given the following financial statements and historical ratios.
1.Please,Prepare statement of retained earnings for the year ended December 31, 2019.
2.Please, Calculate Operating Cash Flow (OCF) and Free Cash Flow (FCF) for year 2019 and make your interpretations?
3.Please, Prepare statement of cash flows for the year ended December 31, 2019, organized by cash flow from operating activities, cash flow from investment activities, and cash flow from financing activities. Can you please, Make your interpretations?
4.Please, Calculate the Cosmo, Inc. financial ratios for the most recent year (2019). Analyze its overall financial situation from time-series viewpoint. And also. break your analysis into an evaluation of the firm's liquidity, activity, debt, and profitability. Please, Make your interpretations.
5.Construct the DuPont system of analysis from 2015 to 2019. Make your comparison. Interpret your results?
6.Please, Using the firm's 2018, and 2019 financial statements, develop the common-size income statements and common-size balance sheets for 2018 and 2019. Make a comparation. Which areas require further analysis and investigation?
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