Imagine that you own a business. Your business could be anything from a coffee shop to a home-based healthcare facility to an accounting firm. As the business owner, you are about to analyze the performance of your company and will need the information from your cash flow statement, horizontal analysis, and vertical analysis.
complete the following:
Now that you have analyzed your company’s performance, you want to expand your business and decide to apply for a small business loan. You have all the financial statements prepared and provide them to the loan officer. The loan officer reviews your paperwork and requests the calculation of three ratios: working capital, acid test ratio, and current ratio.