You are a Potential Investor and you need to Choose 2 financial ratios, calculate and explain potential investor reasoning for each strategic decision based on the company financial statement stated below.

Strategic decision 1: Pay an independent contractor 6000 to build/update your companys website. Classified as an asset

Strategic decision 2: Take out a 50,000 loan from potential creditor B with 50,000 due in four years and 2000 in interest payments due each year until the loan is paid.

Strategic decision 3: 10% of the business to potential investor B for a valuation of 12,000

Company Information

Tomorrow, Wahoo! will be signing contracts with customers totaling $47,000 that are set to earn the company revenues of $35,000 in fiscal year 2021. On those revenues, the company is expected to earn $12,000 in net income and $13,000 in operating cash flows.

Current Balance Sheet

Assets Liabilities

Cash $ 10,000 Accounts Payable $ 1,000

Accounts Receivables 1,000

Owner's Equity

Capital Stock $10,000

Total Assets: $ 11,000 Total Liabilities & Owner's Equity: $ 11,000