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please explain about the The operating cycle of the company.

Instructions: Read the scenario and then access the data worksheet below. Review the grading rubric, which provides tips on organizing your team process. Scenario: The team assignment requires an analysis of specific financial data of Bob Smith, Inc. Bob is an existing bank customer. When the loan to Bob was originally made in 2016, the bank required Bob to increase the YE 2016 cash balance to at least $70,000 to qualify for the interest rate that the bank used for the original loan. This cash balance was required for the bank to make its target yield on the loan created. The Cash Flow Statement and Balance Sheet show an actual YE 2017 cash balance of less than $34,000. The team assignment requires participation in a team effort to complete the 2017 Cash Flow Statement. In addition, your team will also prepare "Common Sized Financial Statements" for the 2 years shown. In the Unit 1 Seminar, you discussed how to complete and use the 2017 Cash Flow Statement outcomes to explain how specific accounts influenced Bob's low cash balances; in other words, some reasons why Bob has no cash! This information allows you to substantiate the 2018 loan denial or renewal request. Your team is the bank's loan committee, and you will address an internal memo to the loan officer in charge of this loan facility, giving the committee's decision on whether to approve the loan as is, renew the loan with modifications, or deny the loan request. Be sure you move away from definitions to analysis. You do not need to give definitions of balance sheet accounts. The Balance Sheets and Cash Flow Statements provided in the data worksheet below will assist you in your analysis. From these documents, and from the ones you produced, discuss the following: - The operating cycle of the company - The covenants within the CC\&Rs that the company did not comply with - The Common Sized Financial Statement (CC\&R s) File Home Insert Page Layout Formulas Data Review View Automate Help R15 fx Formats Ready Scroll Lock Accessibility: Investigate 82F Partly sunny Search File Home Insert Page Layout Formulas Data Review View Automate Help Clipboard Font Alignment Styles R15 A B fx 15 \begin{tabular}{|l|c|c|c|} \hline \multicolumn{1}{|c|}{ B Total Assets } & 2,653,506 & 2,533,771 & 119,735 \\ \hline Liabilities \& Equity & & & \\ Accounts Payable & 378,236 & 332,004 & 46,232 \\ Wages Payable & 14,487 & 7,862 & 6,625 \\ \hline Accrued Taxes & 21,125 & 16,815 & 4,310 \\ \hline Curent Liabilities & 413,848 & 356,681 & 57,167 \\ \hline Long Term Debt & 679,981 & 793,515 & (113,534) \\ \hline Total Liabilities & 1,093,829 & 1,150,196 & (56,367) \\ \hline Equity & 1,559,677 & 1,383,575 & 176,102 \\ \hline Total & 2,653,506 & 2,533,771 & 119,735 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Net Income & 3,155,848 \\ \hline \end{tabular} Formats AG Share XYZ Bank told Bob to increase cash to $70,000 from 2016 to 2017. But cash increased from $16,566 in 2016 to just $33,411 in 2017 , well short of $70,000. In this assignment, you will review six select changes in the Balance Sheet accounts, highlighted in yellow, to bett er understand how these individual account changes impact overall cash flows. File Home Insert Page Layout Formulas Data Review View Automate Help R15 Instructions: Read the scenario and then access the data worksheet below. Review the grading rubric, which provides tips on organizing your team process. Scenario: The team assignment requires an analysis of specific financial data of Bob Smith, Inc. Bob is an existing bank customer. When the loan to Bob was originally made in 2016, the bank required Bob to increase the YE 2016 cash balance to at least $70,000 to qualify for the interest rate that the bank used for the original loan. This cash balance was required for the bank to make its target yield on the loan created. The Cash Flow Statement and Balance Sheet show an actual YE 2017 cash balance of less than $34,000. The team assignment requires participation in a team effort to complete the 2017 Cash Flow Statement. In addition, your team will also prepare "Common Sized Financial Statements" for the 2 years shown. In the Unit 1 Seminar, you discussed how to complete and use the 2017 Cash Flow Statement outcomes to explain how specific accounts influenced Bob's low cash balances; in other words, some reasons why Bob has no cash! This information allows you to substantiate the 2018 loan denial or renewal request. Your team is the bank's loan committee, and you will address an internal memo to the loan officer in charge of this loan facility, giving the committee's decision on whether to approve the loan as is, renew the loan with modifications, or deny the loan request. Be sure you move away from definitions to analysis. You do not need to give definitions of balance sheet accounts. The Balance Sheets and Cash Flow Statements provided in the data worksheet below will assist you in your analysis. From these documents, and from the ones you produced, discuss the following: - The operating cycle of the company - The covenants within the CC\&Rs that the company did not comply with - The Common Sized Financial Statement (CC\&R s) File Home Insert Page Layout Formulas Data Review View Automate Help R15 fx Formats Ready Scroll Lock Accessibility: Investigate 82F Partly sunny Search File Home Insert Page Layout Formulas Data Review View Automate Help Clipboard Font Alignment Styles R15 A B fx 15 \begin{tabular}{|l|c|c|c|} \hline \multicolumn{1}{|c|}{ B Total Assets } & 2,653,506 & 2,533,771 & 119,735 \\ \hline Liabilities \& Equity & & & \\ Accounts Payable & 378,236 & 332,004 & 46,232 \\ Wages Payable & 14,487 & 7,862 & 6,625 \\ \hline Accrued Taxes & 21,125 & 16,815 & 4,310 \\ \hline Curent Liabilities & 413,848 & 356,681 & 57,167 \\ \hline Long Term Debt & 679,981 & 793,515 & (113,534) \\ \hline Total Liabilities & 1,093,829 & 1,150,196 & (56,367) \\ \hline Equity & 1,559,677 & 1,383,575 & 176,102 \\ \hline Total & 2,653,506 & 2,533,771 & 119,735 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Net Income & 3,155,848 \\ \hline \end{tabular} Formats AG Share XYZ Bank told Bob to increase cash to $70,000 from 2016 to 2017. But cash increased from $16,566 in 2016 to just $33,411 in 2017 , well short of $70,000. In this assignment, you will review six select changes in the Balance Sheet accounts, highlighted in yellow, to bett er understand how these individual account changes impact overall cash flows. File Home Insert Page Layout Formulas Data Review View Automate Help R15

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