Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC)
Assignment Steps Resources: Generally Accepted Accounting
Principles (GAAP), U.S. Securities and Exchange Committee (SEC)
Tutorial help on Excel® and Word functions can be found on the
Microsoft® Office website. There are also additional tutorials via
the web offering support for Office products. Scenario: You are a
loan officer for White Sands Bank of Taos. Paul Jason, president of
P. Jason Corporation, has just left your office. He is interested
in an 8-year loan to expand the company's operations. The borrowed
funds would be used to purchase new equipment. As evidence of the
company's debt-worthiness, Jason provided you with the following
facts: 2017 2016 Current Ratio 3.1 2.1 Asset Turnover 2.8 2.2 Net
Income Up 32% Down 8% Earnings per Share $3.30 $2.50 Jason is a
very insistent (some would say pushy) man. When you told him you
would need additional information before making your decision, he
acted offended and said, "What more could you possibly want to
know?" You responded you would , at minimum, need complete, audited
financial statements. Develop a minimum 700-word examination of the
financial statements and include the following: • Explain why you
would want the financial statements to be audited. • Discuss the
implications of the ratios provided for the lending decision you
are to make. That is, does the information paint a favorable
picture? Are these ratios relevant to the decision? State why or
why not. • Evaluate trends in the performance of P. Jason
Corporation. Identify each performance measure as favorable or
unfavorable and explain the significance of each. • List three
other ratios you would want to calculate for P. Jason Corporation,
and in your own words explain in detail why you would use each. •
As the loan officer, what else would you do to gain a better
understanding of Paul Jason's, and the Corporation's financial
picture and why? • Based on your analysis of P. Jason Corporation,
will you recommend approval for the requested loan? Provide
specific details to support your decision. Format the assignment
consistent with APA guidelines.
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