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:
·
1. Explain why you would
want the financial statements to be audited.
·
2. 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.
·
3. Evaluate trends in
the performance of P. Jason Corporation. Identify each performance measure as
favorable or unfavorable and explain the significance of each.
·
4. 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.
·
5. 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?
·
6. Based on your
analysis of P. Jason Corporation, will you recommend approval for the requested
loan? Provide specific details to support your decision.
