Suppose you work in the loan department of Third National Bank.Byron Blakely, the owner of Byron’s Beauty Solutions, has come to you seeking a loan for$500,000 to expand operations. He proposes to use accounts receivable as collateral for the loanand has provided you with the following information from the company’s most recent financialstatements: Requirement1. Analyze the trends of sales, days’ sales outstanding, and cash collections from customersfor 2019 and 2018. Would you make the loan to Blakely? Support your decision with factsand figures. Assume there are no write-offs in 2018 and 2019.

You are an accounting student at your local university. Your brother has recently managed to save $5,000, and he would like to invest some of this money in the stock market, so hes researching various global corporations that are listed on the stock exchange. He is reviewing a company that has Goodwill as an item on the balance sheet. He is quite perplexed about what this means, so he asks you for help, knowing that you are taking accounting classes. How would you explain the concept of goodwill to him by comparing it to other types of resources the company has available?

fter researching the different forms of business organization. Lily Koebel decides to operate "Cookie Creations" as a proprietorship. he then starts the process of getting the business running. In November 2021, the following activities take place. Nov. 8 8 11 13 14 (a) 16 17 20 25 30 Lily cashes her U.S. Savings Bonds and receives $540, which she deposits in her personal bank account. She opens a bank account under the name "Cookie Creations" and transfers $520 from her personal account to the new account. Lily pays $70 for advertising. She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $130 cash. (Hint: Use Supplies account.) Lily starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top- of-the-line food processor and mixer that originally cost her $780. Lily decides to start using it only in her new business. She estimates that the equipment is currently worth $310. She invests the equipment in…

A friend you have known all your life comes to you with an idea for a business.  The friend asks you to invest $10,000 (which you have). You have questions for your friend.  What are they?

Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2022, for Business Solutions follow. Total assets $121,768 Total liabilities $860 Total equity $120,908 Required: 2. Assume Business Solutions borrows the maximum amount allowed from the bank. (Round your intermediate dollar values to the nearest whole number and final answers to 1 decimal place.) (a) What percentage of assets would be financed by debt? (b) What percentage of assets would be financed by equity?

Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2022, for Business Solutions follow.  Total assets $121,568 Total liabilities $862 Total equity $120,706 Required:1. The bank has offered a long-term secured note to Business Solutions. The bank’s loan procedures require that a client’s debt-to-equity ratio not exceed 0.77. As of March 31, 2022, what is the maximum amount that Business Solutions could borrow from this bank? (Round your intermediate calculations to the nearest dollar amount.)2. Assume Business Solutions borrows the maximum amount allowed from the bank. (Round your intermediate dollar values to the nearest whole number and final answers to 1 decimal place.)(a) What percentage of assets would be financed by debt?(b) What percentage of assets would be financed by equity?

You are a Corporate Credit Analyst for your bank. A new corporate customer in the manufacturing sector approached your bank for a large credit facility in the sum of $20 million for production equipment and warehousing. The customer submitted the following financials to you.    Would you grant the credit? Justify stating three reasons to support your decision.

Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2022, for Business Solutions follow. Total assets $120,568 Total liabilities $872 Total equity $119,696 Required: 1. The bank has offered a long-term secured note to Business Solutions. The bank's loan procedures require that a client's debt-to- equity ratio not exceed 0.83. As of March 31, 2022, what is the maximum amount that Business Solutions could borrow from this bank? (Round your intermediate calculations to the nearest dollar amount.) 2. Assume Business Solutions borrows the maximum amount allowed from the bank. (Round your intermediate dollar values to the nearest whole number and final answers to 1 decimal place.) (a) What percentage of assets would be financed by debt? (b) What percentage of assets would be financed by equity? 1. Maximum amount 2. (a) Percentage of assets financed by debt % 2. (b)…

Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $111,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $21,143. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $16,650 of additional cash. • You also need to purchase $8,880 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $5,550.   Based on your evaluation you have…