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The Budda-Bing Manufacturing Company Current Financial Position Analysis Part A: Tony Soprano and Pauli Walnuts, experienced budget analysts at The Budda-Bing Manufacturing Company, have been charged with assessing the firms financial performance during 2020 and its financial position at year-end 2020. To complete this assignment, they gathered the firms 2020 financial statements, shown below. In addition, Tony and Pauli obtained the firms ratio values for 2018 and 2019, along with the 2020 industry average ratios (also applicable to 2018 and 2019). These are presented in the Historical Ratios table, below. Required Part A: a. Calculate the firms 2020 financial ratios, and then complete the ratio table. b. Analyze the firms current financial position from both a cross-sectional and a time-series viewpoint. Break your analysis into an evaluation of the firms liquidity, activity, leverage, and profitability. Use a commonsize analysis for profitability. Based on your analysis of all the data available, provide a detailed discussion of the firms overall financial position. In your discussion, be sure to comment on the companys financial strengths and weaknesses. Provide your analysis in five sections: one for each of the four categories of ratios, and one for an overall evaluation.

Required Part B: a.Use the historic and projected financial data provided to prepare a pro forma income statement and balance sheet for the year ended December 31, 2021. b. Will Budda-Bing Manufacturing Company need to obtain external financing to fund construction of the proposed facility? Explain. Prepare a Statement of EFR. c. How would you recommend Budda-Bing raise the required Financing? What options might be available if the company wanted to explore all opportunities other than using their line of credit?

3 / 6 100% + Balance Sheet The Budda-Bing Manufacturing Company As at December 31st, 2019 and 2020 December 31 2019 Assets 2020 Current Assets Cash Accounts Receivable Inventories Total Current Assets Gross fixed assets (at cost) Less: Accumulated Amortization Net fixed assets Total assets $ 24,100 763,900 763,445 1,551,445 1,691,707 348,000 1,343,707 $2,895,152 $ 30,000 846,540 726,450 1,602,990 2,126,867 520,000 1,606,867 $3,209,857 Liabilities and Shareholders Equity Current Liabilities Accounts Payable Line of credit Accruals Total Current Liabilities Long-term debt Total Liabilities $ 400,500 343,750 100,902 845,152 700,000 1,545,152 $ 245,450 326,000 79,550 651,000 1,180,420 1,831,420 Shareholders Equity Preferred Shares Common Shares Retained Earnings Total Shareholders Equity Total Liabilities and Shareholders Equity 70,000 300,000 980,000 1,350,000 70,000 300,000 1,008,437 1,378,437 $2,895,152 $3,209,857

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