project about analyzing the ratios and the Credit Risk of the firm

Explain your decision after analyzing the ratios and the Credit Risk of the firm. The analysis should include:

1- Circumstances leading to need for the loan

2- Credit History

3- Cash flows

4- Collateral

5- Capacity for debt

6- Contingencies

7- Character of Management

8- Communication

9- Conditions or covenants

write a Word document containing your analysis and explanations，I also attach the lecture PowerPoint and excel data（please check If there is an error in my calculations, please correct them.）

Explain your decision after analyzing the ratios and the Credit Risk of the firm. The analysis should include:
1- Circumstances leading to need for the loan
2- Credit History
3- Cash flows
4- Collateral
5- Capacity for debt
6- Contingencies
7- Character of Management
8- Communication
9- Conditions or covenants
write a Word document containing your analysis and explanations，I also attach the lecture PowerPoint and excel data（please check
If there is an error in my calculations, please correct them.）
Income Statement
Exhibit 5.27
Massachusetts Stove Company
Income Statement
Income Statement
Sales Revenue
Cost of Goods Sold
Selling & Admin
Legal
Interest
Income Taxes
Net Income
Dividends
Inc.(Dec.) in Ret.Earn
Actual/Assumptions
Growth Rate in Sales
Cost of Gd Sold/Sales
Selling & Admin/Sales
Legal Expense
Interest Rate
Year 9
665.771
460.797
177.631
28.577
25.948
0
(27.182)
0
(27.182)
Actual
Year 10
783.754
474.156
290.719
30.092
24.122
0
(35.335)
0
(35.335)
Year 11
Year 12
Year 13
955.629 1.194.536 1.493.170
514.907
609.213
731.653
390.503
489.760
612.200
9.796
45.000
0
23.974
26.510
26.510
0
0
0
16.449
24.052
122.807
0
0
0
16.449
24.052
122.807
Actual
Actual
Assumed Assumed
17,7%
21,9%
25,0%
25,0%
69,2%
60,5%
53,9%
51,0%
49,0%
26,7%
37,1%
40,9%
41,0%
41,0%
45.000
0
0,064
0,060
0,061
0,06
0,06
Balance Sheet
Exhibit 5.28
Massachusetts Stove Company
Balance Sheet
Balance Sheet
Year 8
Actual
Year 9
Year 10
Year 11
Projected
Year 12 Year 13
Cash
Accounts Rec.
Inventories
Total Current Assets
Prop., Plant, Equip.
Accum. Depre
Prop., Plant, Equip. Net
Other Assets
Total Assets
3.925
94.606
239.458
337.989
258.870
-205.338
53.532
17.888
409.409
11.707
54.772
208.260
274.739
316.854
-228.985
87.869
17.888
380.496
8.344
44.397
209.004
261.745
362.399
-250.189
112.210
17.594
391.549
37.726
31.964
225.490
295.180
377.784
-274.347
103.437
17.006
415.623
11.289
40.035
291.924
343.248
440.284
-302.502
137.782
17.006
498.037
6.512
49.964
329.480
385.956
487.784
-333.694
154.090
17.006
557.052
Accounts Pay.
Notes Payable
Other Curr. Liab.
Total Curr. Liab.
Long-term Debt
Total Liabilities
148.579
152.985
13.340
314.904
248.000
562.904
139.879
140.854
11.440
292.173
269.000
561.173
189.889
125.256
23.466
338.611
268.950
607.561
160.905
93.091
62.440
316.436
298.750
615.186
198.206
143.091
33.500
374.797
298.750
673.547
176.915
93.091
41.000
311.006
298.750 Will be same no.
609.756
Common Stock
Add. Paid-in Capital
Accum. Deficit
Total Share. Eq.
Total Liab. & SH, Eq,
2.000
2.000
2.000
2.000
2.000
2.000
435.630 435.630 435.630 435.630 435.630 435.630
(591.125) (618.307) (653.642) (637.193) (613.141) (490.334)
(153.495) (180.677) (216.012) (199.563) (175.511) (52.704)
409.409 380.496 391.549 415.623 498.037 557.052
Actual/Assumptions
Cash
Days Accts. Rec.
Days Inventory
Capital Expend.
Days Accts. Payable
Change in Notes Pay
Other Current Liab
Change in L.T. Debt
Change Com Stock
Change Add.Paid-in
Actual
Actual
Actual
Assumed Assumed
11.707
8.344
37.726
Plug
Plug
41
23
15
11
11
177
161
154
155
155
57.984
45.545
15.385
62.500
47.500
123
127
120
97
89
-12.131
-15.598
-32.165
50.000
-50.000
11.440
23.466
62.440
33.500
41.000
21.000
-50
29.800
0
0
0
0
0
0
0
0
0
0
0
0
Balance Sheet
Cash Flow Statement
Exhibit 5.29
Massachusetts Stove Company
Statements of Cash Flows
Cash Flow Statement
OPERATIONS
Net Income
Depreciation
Year 9
Year 10
Year 11
Year 12
Year 13
($27.182) ($35.335)
23.647
21.204
$16.449
24.158
(Inc.)/Dec. in A/R
(Inc.)/Dec. in Inventory
Inc./(Dec.) in A/P
Inc./(Dec.) in Oth. Curr. Liab.
Cash Flow From Operations
39.834
31.198
(8.700)
(1.900)
$56.897
12.433
(8.071)
(16.486) (66.434)
(28.984)
37.301
38.974
(28.940)
$46.544 ($13.937)
INVESTING
Acq. of Prop., Plant, Equip.
Other Investing
Cash Flow From Investing
(57.984) (45.545) (15.385) (62.500) (47.500)
0
294
588
0
0
($57.984) ($45.251) ($14.797) ($62.500) ($47.500)
FINANCING
Inc/(Dec) in Short-Term Bor.
Inc/(Dec) in Long-Term Bor.
Inc/(Dec) in Common Stock
Dividends
Other Financing
Cash Flow from Financing
($12.131) ($15.598) ($32.165)
21.000
(50)
29.800
0
0
0
0
0
0
0
0
0
8.869
(15.648)
(2.365)
$50.000
0
0
0
0
50.000
($50.000)
0
0
0
0
(50.000)
Change in Cash
Cash, Beginning of Year
Cash, End of Year
$7.782
$3.925
$11.707
($3.363)
$11.707
$8.344
$29.382
$8.344
$37.726
($26.437)
$37.726
$11.289
($4.777)
$11.289
$6.512
Cash Balance (from Bal Sht)
Difference
11.707
0
8.344
0
37.726
0
11.289
(0)
6.512
0
10.375
(744)
50.010
12.026
$57.536
$24.052 $122.807
28.155
31.192
(9.928)
(37.556)
(21.291)
7.500
$92.723
Cash Flow Statement
is the rate of growth of PP&E in the BS multiplied by last year Dep in the CF statement
Financial Ratios
Exhibit 5.30
Massachusetts Stove Company
Profitability and Risk Ratios
Financial Ratios
Rate of Return on Assets
Profit Margin for ROA
Total Assets Turnover
Cost of Goods Sold/Sales
Selling & Admin Exp./Sales
Legal Expense
Interest Expense/Sales
Income Tax Expense/Sales
Accts. Rec. Turnover Ratio
Days Accounts Receivable
Inventory Turnover Ratio
Days Inventory
Fixed Assets Turnover Ratio
Rate of Ret. on Common Equity
Profit Margin for ROCE
Capital Structure Leverage Ratio
Current Ratio
Quick Ratio
CFO/Current Liabilities
Accts Pay Turnover Ratio
Days Accounts Payable
Total Liabilities/Total Assets
Long-term Debt/Total Assets
CFO/Total Liabilities
Interest Coverage Ratio
Income Tax Rate
Year 9
-0,3%
-0,2%
1,7
69,2%
26,7%
4,3%
3,9%
0,0%
8,9
41
2,1
177
9,4
-16,3%
-4,1%
-2,4
0,9
0,2
18,7%
3,0
123
147,5%
70,7%
10,1%
0,0
0,0%
Year 10
-2,9%
-1,4%
2,0
60,5%
37,1%
3,8%
3,1%
0,0%
15,8
23
2,3
161
7,8
-17,8%
-4,5%
-1,9
0,8
0,2
18,2%
2,9
127
155,2%
68,7%
9,8%
-0,5
0,0%
Year 11
10,0%
4,2%
2,4
53,9%
40,9%
1,0%
2,5%
0,0%
25,0
15
2,4
154
8,9
7,9%
1,7%
-1,9
0,9
0,2
14,2%
3,0
120
148,0%
71,9%
7,6%
1,7
0,0%
Year 12
11,1%
4,2%
2,6
51,0%
41,0%
3,8%
2,2%
0,0%
33,2
11
2,4
155
9,9
12,8%
2,0%
-2,4
0,9
0,1
-4,0%
3,8
97
135,2%
60,0%
-2,2%
1,9
0,0%
Year 13
28,3%
10,0%
2,8
49,0%
41,0%
0,0%
1,8%
0,0%
33,2
11
2,4
155
10,2
107,6%
8,2%
-4,6
1,2
0,2
27,0%
4,1
89
109,5%
53,6%
14,5%
5,6
0,0%