Prepare a financial ratio and financial statement analysis

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Reference no: EM13874205

Prepare a financial ratio and financial statement analysis.

Review the case study, then answer the following questions and provide your recommendations. Provide a rationale for each recommendation. There is a "help" spreadsheet that can be used to assist in organizing and summarizing the issues. Spreadsheet tables can be pasted into a Microsoft Word document to highlight and summarize the main issues, but you should also include text discussion within your document that expands on the summary tables.

Case study analysis questions:

Does the Tea market appear to be attractive as of the year 2000? Explain by referencing relevant metrics and information.

How is Honest Tea doing financially and otherwise? Discuss by referencing relevant metrics and other information.

What does Honest Tea need to do about its financing to be successful in the future? Discuss.

Who has the company approached for financing in the past and were they the "right" investors? Explain.

What amount of financing appears to be needed to support the future sales projections of $9,000,000 in 2001 and $16,900,000 in 2002? Explain.

Describe the alternative funding sources that are being considered. Describe the Pros and Cons for each with conclusions.

What value seems reasonable for the total equity of the company? Why is this measure important as the company meets with potential investors? Explain.

Imagine you are a financial consultant to Honest Tea. Present your analysis and recommendations as a report to Honest Tea management.

Reference no: EM13874205

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