Write a memo report thoroughly answering the questions below:

1. Prepare a cash flow statement of the company.

2. Prepare a common size income statement and balance of the company.

3. Prepare a trend analysis of the income statement.

4. Use ratio analysis (include calculations) to analyze the company's financial statements. Use Exhibit 3 to guide your calculations.

5. Based on these ratios and your analysis, would you, as the loan officer, grant the loan request? Why or why not?

6. What areas of improvement do you suggest for the future?

Additional instructions:

Organization Coherence Professional Presentation Paper is logically organized and easy to follow (section headings are encouraged). Longer quotations use block quotes and are easily identied. Paper is easily understood and paragraphs show organization (use a topic sentence), unity (all sentences relate to the topic sentence], and development (fully explain the idea introduced in the topic sentence). Sentences use strong subjects (eliminate "it" and \"there" as subjects), proper grammar, and proper punctuation. Wording is concise and does not use colloquiallsms or Jargon. Tables and charts are clearly labelled and referred to in the text of write- ups. Tables and charts should be understood on their own, with clear titles and legends. The format of all tables should be easily read and consistent (if multiple tables are used). Generic Professional Analytical Skills Assumptions All assumptions not listed in the case should be clearly identified and defended. Replicable Sufficient detail should be included so all calculations and analyses are replicable by the reader. Logical Writing should show a clear flow of logic as you defend your positions and assumptions to a potentially skeptical reader. Case Specific Analyses (Varies by Case)