Instruction
First paper(1or2pages): Please research and then discuss the aspects of the bankruptcy process. Also, discuss capital structure and how a company's structure impacts its progress through the bankruptcy process.
Second Paper (+2 pages): In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study’s question with a recommendation.
Please refer to the income statement and balance sheet for the Great Service Cleaning and Maintenance Company available here: https://docs.google.com/spreadsheets/d/10AsujlhQj6_R5Xuc9IJNOoR90ui0asy_E5zduYjN3bc/edit?usp=sharing
Perform a financial ratio analysis of the company using the following ratios: (1) Gross profit margin, (2) Current ratio, and (3) Debt ratio. From research independent from the textbook, find two other ratios to calculate. Define them and explain their purpose and how they add value to your analysis.
Select significant lines from the financial statements and provide an observation of their trends (Is the account increasing or decreasing in value? What does this mean?)
Draw some conclusions based on your observations. For instance, why do you think the assets of the company went up from 2013 to 2014? What implications does this have? What follow-up questions do you have to ask the company’s management?
Support your observations with data and logic. Discuss what limitations exist with the informational material provided. What other material would be important to your trend analysis?