Analyze the case study, “Frank Smith Plumbing.”

Analyze the “Frank Smith Plumbing’s Financial Statement” spreadsheet.

Compare the cost of the truck to the cash flow records

Compile your calculations in a Microsoft® Excel® document

• Explain why limited leverage is good for business.Show the profitability of the project so that Stephanie can convince her father to purchase the truck by borrowing money.
• Explain how Stephanie should convince her mother that it is inappropriate to call the bank manager and his wife for assistance in getting the loan approval?
• Analyze whether the investment in the truck is profitable.
• Explain whether it is more beneficial for Frank to close his business.
• Explain what you would do in this same situation.

 

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