Corporate Financing|Mathematics
Please help only if you understand Corporate Financing. I will attach the balance sheet and cash flow statement worksheet along with the template outline for the business loan denial letter.Â
Each area highlighted in yellow that says “explain” on the balance sheet and cash flow statement worksheet must be explained in the letter
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The paper needs an analysis of specific financial data of Bob Smith Inc. Bob is an existing bank customer. When the loan to Bob was originally made in 2013 the bank required Bob to increase the YE 2014 cash balance to at least $70,000. The Cash Flow Statement and Balance Sheet show an actual YE 2014 cash balance of less than $34,000. The Assignment requires participation in an effort to complete the (partially prepared) 2014 Cash Flow Statement. In Seminar 1 you discussed how to complete and use the 2014 Cash Flow Statement outcomes to explain how specific accounts influenced Bob’s low cash balances…in other words…some reasons why Bob has no cash! This information allows you to substantiate the 2015 loan denial. You are aware this action will create dire financial circumstances for Bob’s company. As the loan officer you must pass along the news in a business letter that is most professional and written in an objective manner. Please use values in the letter whenever possible.Â
