The company Seat has a new project, and is asking BBVA, the bank where you work as a credit manager a loan to proceed with the investment for an amount of 500.000 to be paid in 5 years.
The company has delivered to you the trial balance for the years 2020 and 2021.
The company was founded in 1980 and has 100000 shares outstanding.
During the year the company issued 5000 shares at a market value of 100€.
Instructions:
Prepare Income statement for years 2020 and 2021 (10 points)
Balance Sheet for the years 2020 and 2021 (10 points)
Prepare Cash Flow for the year 2021. (30 points)
How do you explain the difference between the net income of year 2021 and the Operating Cash Flow of year 2021. (5 points)
How much is the investment for 2021 (assume all investments were paid in cash). (5 points)
What would you answer the company regarding the request for the loan? (5 points)
How much is the Earnings per share in years 2020 and 2021? (5 points)
How much is the PE ratio in year 2021? (10 points)
Explain your calculations in detail, only the answer is not enough.
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