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Scenario: You are a bank loan manager and you have had two companies (Arrow and Root) come to your bank, each requesting a 6-month loan. You must decide which company to give the loan to. Required: This file contains 4 tabs. The tabs "Arrow" and "Root" contain the respective financial statements for Arrow and Root. The "Student Submission" tab is where you will perform your calculations and written work. Part 1: (16 ratios 2 marks each =32 marks total) In the "Student Submission" tab, you will be calculating Liquidity, Solvency, and Profitability ratios for each company, stating what makes a ratio more successful, and comparing the results between the two companies to determine which company has stronger results. In columns D and E, prepare your calculations for Arrow and Root. When typing in your formulae, it is recommended to create links to the financial statement figures to avoid transposition errors. Please complete all calculations to 2 decimal places. In columns F, please indicate the units for each ratio calculation. There are drop-down menus available for you to select the units when you click into the cells in column F. If a ratio is uses % as a unit, please leave your calculation in whole number form (ie. 5.25 instead of 0.0525 ). In column G, comment on which company has a better ratio result based on your calculations (The ratios may be the same/comparable depending on your particular version of financial statements). Please note that when comparing the working capital ratios between companies, the companies need to be considered comparable in size. For the purposes of this assignment, assume that Arrow and Root are comparable. Part 2: (5 marks) Below your calculations, you will write a short 3-4 sentence conclusion relating to which company you would approve the loan to based on your calculations from Part 1. ARROW LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 CANADIAN DOLLARS (millions of dollars) ASSETS Current assets Total current assets Investments 131 Property plant, and equipment 61 Land 62 Office Building 63 Less: Accumulated depreciation 64 Equipment 65 Less: Accumulated depreciation 66 Vehicles 67 Less: Accumulated depreciation 68 Furniture Less: Accumulated depreciation \begin{tabular}{r|r|} \hline & 56 \\ \hline 4,047 & \\ \hline 550 & 3,497 \\ \hline 2,244 & \\ \hline 461 & 1,783 \\ \hline 598 & \\ \hline 60 & 538 \\ \hline 110 & \\ \hline 38 & 72 \\ \hline \end{tabular} Total property, plant and equipment 5,946 Notes: Please use Excel formulae to calculate your ratios. If a ratio is reported in % form, please present your solution in whole number form (ie. 5.25 instead of 0.0525). Cells have been formatted to display 2 decimal places. Please do not adjust the cell formatting. Scenario: You are a bank loan manager and you have had two companies (Arrow and Root) come to your bank, each requesting a 6-month loan. You must decide which company to give the loan to. Required: This file contains 4 tabs. The tabs "Arrow" and "Root" contain the respective financial statements for Arrow and Root. The "Student Submission" tab is where you will perform your calculations and written work. Part 1: (16 ratios 2 marks each =32 marks total) In the "Student Submission" tab, you will be calculating Liquidity, Solvency, and Profitability ratios for each company, stating what makes a ratio more successful, and comparing the results between the two companies to determine which company has stronger results. In columns D and E, prepare your calculations for Arrow and Root. When typing in your formulae, it is recommended to create links to the financial statement figures to avoid transposition errors. Please complete all calculations to 2 decimal places. In columns F, please indicate the units for each ratio calculation. There are drop-down menus available for you to select the units when you click into the cells in column F. If a ratio is uses % as a unit, please leave your calculation in whole number form (ie. 5.25 instead of 0.0525 ). In column G, comment on which company has a better ratio result based on your calculations (The ratios may be the same/comparable depending on your particular version of financial statements). Please note that when comparing the working capital ratios between companies, the companies need to be considered comparable in size. For the purposes of this assignment, assume that Arrow and Root are comparable. Part 2: (5 marks) Below your calculations, you will write a short 3-4 sentence conclusion relating to which company you would approve the loan to based on your calculations from Part 1. ARROW LTD. STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 CANADIAN DOLLARS (millions of dollars) ASSETS Current assets Total current assets Investments 131 Property plant, and equipment 61 Land 62 Office Building 63 Less: Accumulated depreciation 64 Equipment 65 Less: Accumulated depreciation 66 Vehicles 67 Less: Accumulated depreciation 68 Furniture Less: Accumulated depreciation \begin{tabular}{r|r|} \hline & 56 \\ \hline 4,047 & \\ \hline 550 & 3,497 \\ \hline 2,244 & \\ \hline 461 & 1,783 \\ \hline 598 & \\ \hline 60 & 538 \\ \hline 110 & \\ \hline 38 & 72 \\ \hline \end{tabular} Total property, plant and equipment 5,946 Notes: Please use Excel formulae to calculate your ratios. If a ratio is reported in % form, please present your solution in whole number form (ie. 5.25 instead of 0.0525). Cells have been formatted to display 2 decimal places. Please do not adjust the cell formatting

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