what is your final recommendation to the Business Loans Manager of Provenance Banking Corporation: an approval or denial of the loan to each and/or both firms? Discuss the basis for your recommendation. Ensure you base your recommendation only on the change in the ratios for the two stated financial years (i.e., 2021 and 2022).

 

Appendix 2a (RIC) 2021 Inventories = 81,947,000.00 Average Daily COGS = COGS/365= 848,694,000.00/365= 2,325,189.041 Account Receivable = 111,316,000.00 Average Daily Sales = 927,719,000.00/365= 2,541,695.89 Account Payable= 169,752,000.00 Average Daily COGS =COGS/365=-848,694,000.0 0/365= 2,325,189.041 CCC Appendix 2b(RIC) 2022 Inventories = 117,131,000.00 Average Daily COGS= COGS/365= 949,523,000,00/365=2,601,4 23.877 Account Receivable = 127,889,000.00 Average Daily Sales = 1,049,086,000.00/365= 2,874,208.219 Account Payable= 206,626,000.00 Average Daily COGS= COGS/365= 949,523,000,00/365=2,601,4 23.877 CCC Calculation Inventory Days = 81,947,000.00/2,325,189.041 Account Receivable Days = 43.8 111,316,000.00/2,541,695.89 1 Account Payable Days = 169,752,000.00/2,325,189.04 73.0 =35.2+43.8-73.0 Calculation Inventory Days = 117,131,000.00/2,601,423.87 7 Days 9 35.2 Account Payable Days = 206,626,000.00/ 2,601,423.877 = 45.0+44.5-79.4 6 days Account Receivable Days = 44.5 127,889,000.00/2,874,208.21 Days 45.0 79.4 10.1 days