acc561 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 req

profileFin-Acc-Boss
 (Not rated)
 (Not rated)
Chat

  

acc561 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.

About Your Signature Assignment

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.

    • 7 years ago
    acc561 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 r
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      word_examination.docx