### Question details

ACC 561 Ratio Analysis
\$ 20.00

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.

This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments may be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.

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.

Click the Assignment Files tab to submit your assignment.

### LaVarra

Available solutions
• Financial Ratio Analysis
\$20.00

Financial Analysis Ratio Analysis A ratio analysis evaluates the financial health and performance of a company in various financial areas. The ratio analysis can be conducted in many areas such as efficiency, liquidity, profitability, and solvency. The data from a ratio analysis is easily computed and helps the comparison of like businesses compare financial performance with industry standards. A ratio a

Submitted on: 03 Nov, 2017 10:41:42 This tutorial has not been purchased yet .

### Deepeyes

• Financial Ratio Analysis
\$25.00

Clearly

Submitted on: 04 Nov, 2017 03:58:18 This tutorial has not been purchased yet .

### Irfanrai_530

• Financial Ratio Analysis
\$15.00

Financial Analysis Ratio Analysis A ratio analysis evaluates the financial health and performance of a company in various financial areas. The ratio analysis can be conducted in many areas such as efficiency, liquidity, profitability, and solvency. The data from a ratio analysis is easily computed and helps the comparison of like businesses compare financial performance with industry standards. A ratio a

Submitted on: 04 Nov, 2017 07:18:54 This tutorial has not been purchased yet .

### AwaisAli

• Ratio Analysis Assignment
\$30.00

Purpose of Assi

Submitted on: 06 Nov, 2017 10:42:28 This Solution has been Purchased: 1 times Average Rating for this solution is A+
Attachment: Ratio Analysis.docx