Chapter 11
Financial Statement Analysis
562
b) Contigo is looking at applying for a new bank loan. The bank will examine the ratios that
focus on the strength of Contigo’s cash flow to determine if they should approve the loan.
Based on the information in part a), would you recommend the bank to approve the bank
loan? Why or why not?
AP-18A (
2
)
Perform a horizontal analysis for Groff Inc. Use 2013 as the base year and comment on the
results.
Groff Inc.
In Millions of Dollars
2016
2015
2014
2013
Revenue
500
400
300
200
Net Income
166
158
144
120
Groff Inc.
In Millions of Dollars
2016
2015
2014
2013
Revenue
Revenue Ratio
Net Income
Net Income Ratio
