the first three is the question and the the rest is just data for the answer!
please help i need this today!!!
Units is not included only Arrow & Root!
i forgot to add this page by mistake, sorry!
Group Number: Ratio Analysis Assignment Student Name: Student Name: Working Capital: Current Assets - Current Liabilities Current Ratio: Debt to Total Equity: You are the loan manager at a local bank. Two companies have approached you about securing a 6 -month loan. Based on your calculations above, please comment on the following: 1) Assess and comment on Arrow and Root's UQUDITY ratios. [1 mark] 2) Assess and comment on Arrow and Root's SOLVENCY ratios. (1 mark) 3) Assess and comment on Arrow and Root's PROFITABIUTY ratios. (1 mark) 4) Which company would you prefer to give the loan to between Arrow and Roet? Fxplain why. [t mark] 5) In 2-3 sentences, describe the concern you would have if you found out that Arrow had upgraded its accounting systern this year and the company did not test the new accounting system to make sure that the system was processing data coerectly? (I mark) ARROW LTD. ARROW LTD. STATIMLNT OF HNANCIAL POSTTON AS AT DECEMBER 31, 2022. CANADLAN DOULARS (mllions of dollars) ASSETS Current assets Liabilities and Shareholders" Equity Current Liabilities ROOT LTD. INCOME STATEMENT ROOT LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 CANADIAN DOLLARS (millions of dollars) ASSETS Current assets Notes: Please use Excel formulae to calculate your ratios. If a ratio is reported in \% form, please present your solution in whole number form (ie. 5.25 instead of 0.0525). Cells have been formatted to display 2 decimal places. Please do not adjust the cell formatting. Please note: All submissions will be subject to plagarism detection software Turnitin. Scenario: You are a bank loan manager and you have had two companies (Arrow and Root) come to your banik, each requesting a 6-month loan. You must decide which company to give the loan to. Required: This file contains 4 tabs. The tabs "Arrow" and "Root" contain the respective financial statements for Arrow and Root. The "Student Submission" tab is where you will perform your calculations and written work. Part 1: (16 ratios 2 marks each =32 marks total) In the "Student Submission" tab, you will be caiculating Liquidity, Solvency, and Profitability ratios for each company, stating what makes a ratio more successful, and comparing the results between the two companies to determine which company has stronger results. In columns D and E, prepare your calculations for Arrow and Aoot. When typing in your formulae, it is recommended to create links to the financial statement figures to avoid transposition errors. Please complete all calculations to 2 decimal places. In columns F, please indicate the units for each ratio calculation. There are drop-down menus available for you to select the units when you click into the cells in column F. If a ratio is uses % as a unit, please leave your calculation in whole number form (le. 5.25 instead of 0.0525) In column G, comment on which company has a better ratio result based on your calculations (The ratios may be the same/comparable depending on your particular version of financial statements). Please note that when comparing the working capital ratios between companies, the companies need to be considered comparable in size. For the purposes of this assignment, assume that Arrow and Root are comparable. Part 2: (5 marks) Below your calculations, you will write a short 3-4 sentence conclusion relating to which company you would approve the loan to based on your calculations from Part 1. Submission: Please have one group member upload a copy of your group's completed assignment in Brightspace. Please make sure that the names of all of your group members and your group number are included on the top of the "Student Submission" tab
