Frank Smith Plumbing

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

Develop a 1,050-word analysis and include the following:

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.

Format your assignment consistent with APA guidelines.

………………………Answer preview……………………..

Limited leverage is the borrowing money to finance projects that a business could otherwise not afford by itself (Denninger, 2012). Businesses can borrow from financial lending institutions such as banks, credit societies or from the micro-finance sector. The benefits of limited leverage are more than its risks. The significant risks of financial leverage are high operational costs and income investment risk…………………………

APA

1191 words