1. Prepare common size financial statements (i.e., Income Statement and Balance Sheet) and analyze trends in the data over the three years.
Financial Accounting – Vertical Analysis: https://www.youtube.com/watch?v=GAKDCk19dfU
Common Size Balance Sheet: https://www.youtube.com/watch?v=E_Nript8KGQ
2. Compute the ratios in the attached Excel file for the three years. What do the ratios reveal about Anandam Manufacturing?
3. If you were the loan officer, would you grant the loan request? Why or why not?