Acc/561 version 7 accounting scenario: you are a loan officer for

ACC/561 Version 7 Accounting 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. Copyright Copyright © 2017 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices.Individual Assignment: Ratio Analysis Purpose of Assignment This week’s focus is on the preparation of financial reports for internal users, such as managers. This case study applies the concepts of managerial accounting, through comparative and ratio analysis, and requires students to identify financial data needed by managers for decision making. Resources Required 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. Grading Guide Content Met Partially Met Not Met Comments: Explained why student would want the financial statements to be audited. Discussed the implications of the ratios provided for the lending decision about to be made. That is, did the information paint a favorable picture? Answered the following question: · Are these ratios relevant to the decision? Stated why or why not. Evaluated trends in the performance of P. Jason Corporation. Identified each performance measure as favorable or unfavorable and explained the significance of each. Listed three other ratios that student would want to calculate for P. Jason Corporation, and in own words explained in detail why student would use each. Answered the following question: · As the loan officer, what else would student do to gain a better understanding of Paul Jason’s, and the Corporation’s financial picture and why? Answered the following question: · Based on student’s analysis of P. Jason Corporation, would student recommend approval for the requested loan? Provided specific details to support decision. The examination is a minimum 700words in length. Total Available Total Earned 4

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