The TechOne Company was established in the Spring of 2015. During the first couple of years, the company experienced a rapid increase in its sales. Despite good profits, the company had experienced a shortage in cash and had found it necessary to increase its borrowing from the bank in the following year (2016). The maximum loan that the bank would extend to the owner Mr. Company was $200,000. In addition, the bank did not ask the company to secure the debt with its real property. Mr. Company, sole owner and president of the TechOne Company was therefore asking his VP of Finance to perform a financial analysis to understand whether the shortage of cash was due to money tied up in its inventory or was it due to cash tied up elsewhere.

Please use the financials provided by the case to help the bank with their analysis. Please follow the steps below to successfully complete the project:

1. Please recreate the financial statements using excel
2. Please provide a summary on the state of the economy per the information provided in the case.
3. Please create a Common-size Income Statement and discuss your findings
   1. i.e. COGS is x% of revenue. This line item has increase during the past x years, etc
4. Please create a Common-Size Balance Sheet and discuss your findings
   1. i.e. A/R is x% of Total Assets. This line item has decreased during the past x years
5. Please use your trend analysis to project the Income Statement (3 years)
6. Please open the file labelled Note on Financial Ratio Formula, and compute three ratios from each category.
7. Please provide two files: a. An excel file to show your calculation and projections b. A word document to provide your recommendation on the loan