Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC)
Scenario: You are a mortgage functionary for White Sands Bank of Taos. Paul Jason, superintendent of P. Jason Corporation, has orderly left your employment. He is animated in an 8-year mortgage to dilate the company's operations. The added funds would be used to acquisition new equipment. As appearance of the company's debt-worthiness, Jason granted you delay the aftercited facts:
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 absence additional perceiveledge anteriorly making your resolution, he acted offended and said, "What over could you haply absence to perceive?" You responded you would , at insufficiency, absence entire, audited financial statements.
Develop a insufficiency 700-word examination of the financial statements and include the aftercited:
Explain why you would absence the financial statements to be audited.
Discuss the implications of the ratios granted for the lending resolution you are to produce. That is, does the perceiveledge delineate a indulgent draw? Are these ratios apt to the resolution? State why or why not.
Evaluate trends in the act of P. Jason Corporation. Identify each act value as indulgent or unindulgent and interpret the view of each.
List three other ratios you would absence to rate for P. Jason Corporation, and in your own vote interpret in specialty why you would use each.
As the mortgage functionary, what else would you do to find a emend interpretation of Paul Jason's, and the Corporation's financial draw and why?
Based on your separation of P. Jason Corporation, obtain you applaud acclamation for the requested mortgage? Provide particular specialtys to patronage your resolution.
Format the assignment compatible delay APA guidelines.