Answer the main question given in bold in 750 words, using the all the suggested questions I need to justify the working of the excel in word file in 750 words. back the interpretation with numbers)Main question: How severely will the new law affect Pryca’s business? Explain. What should Pryca do about it?
Suggested Questions:
1)Financial position. What do you think of the financial situation of Pryca, considering its liquidity (current ratio), leverage, WCR and WC? Should Pryca take action to dramatically improve its financial health and more specifically its WC?
2)Is Pryca making money? Have a look at the income statement and its evolution.
3)Analyze the balance sheet of Pryca (the big numbers). Look at the operational ratios to see the financing of sales. Specifically, days of inventory, collection period, payment period and
the relation between them.
4)Business Strategy. What is the business strategy of Pryca? How does it make money? Is the
business strategy of Pryca coherent with its financial structure?
5)Growth. Analyze the growth of Pryca and how it is financed. Do you think that Pryca’s financing
of growth is correct?
6)The management of Pryca had estimated an average payment period of 75 days in case the
new Trade Bill was approved. Analyze the consequences of the new Trade Bill for Pryca and
give your recommendations to the company.
7) Recommendations. What are the weak points of Pryca’s financial strategy, if any? Do you think
that Pryca’s business and financial strategy are sustainable in the future? What would you recommend to Pryca’s management?
