Snowflake Manufacturing [SM] has recently come to the bank you work for looking for a $280,000 long-tem loan. The following data was submitted with SM's loan application: 2019 $316,500 120,000 60,800 303,700 2020 $475,200 155,400 175,200 408,600 103,500 13,200 2021 $820,800 414,600 300,000 490,200 208,500 28,500 Current assets. Current liabilities Non-current liabilities. Shareholders' equity.. Operating income.. Interest expense.. Income tax expense.. Net income. 168,900 7,200 65,400 96,300 106,300 34,200 56,100 64,200 72,000 108,000 115,000 Operating cash flow The loan committee has asked you to analyze the data using at least three relevant financial ratios and complete a brief trend analysis. They would also like you to briefly discuss any limitations that might exist when completing this type of analysis and what data dashboards can do to help this. Finally, they have asked that your report also contain a recommendation about whether SM's loan request should be approved. Required: Prepare the report

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Snowflake Manufacturing [SM] has recently come to the bank you work for looking for a
$280,000 long-term loan. The following data was submitted with SM's loan application:
2020
$475,200
155,400
175,200
408,600
103,500
13,200
34,200
56,100
64,200
2019
$316,500
120,000
2021
$820,800
Current assets..
Current liabilities.
Non-current liabilities.
Shareholders' equity..
Operating income...
Interest expense...
Income tax expense..
Net income...
414,600
60,800
303,700
168,900
7,200
65,400
96,300
106,300
300,000
490,200
208,500
28,500
72,000
108,000
115,000
Operating cash flow...
The loan committee has asked you to analyze the data using at least three relevant financial ratios
and complete a brief trend analysis. They would also like you to briefly discuss any limitations
that might exist when completing this type of analysis and what data dashboards can do to help
this. Finally, they have asked that your report also contain a recommendation about whether
SM's loan request should be approved.
Required:
Prepare the report
Transcribed Image Text:Snowflake Manufacturing [SM] has recently come to the bank you work for looking for a $280,000 long-term loan. The following data was submitted with SM's loan application: 2020 $475,200 155,400 175,200 408,600 103,500 13,200 34,200 56,100 64,200 2019 $316,500 120,000 2021 $820,800 Current assets.. Current liabilities. Non-current liabilities. Shareholders' equity.. Operating income... Interest expense... Income tax expense.. Net income... 414,600 60,800 303,700 168,900 7,200 65,400 96,300 106,300 300,000 490,200 208,500 28,500 72,000 108,000 115,000 Operating cash flow... The loan committee has asked you to analyze the data using at least three relevant financial ratios and complete a brief trend analysis. They would also like you to briefly discuss any limitations that might exist when completing this type of analysis and what data dashboards can do to help this. Finally, they have asked that your report also contain a recommendation about whether SM's loan request should be approved. Required: Prepare the report
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