Write a 1-2 page executive summary, along with an appendix of supporting information, in which you analyze an organization's financial performance as well as their level of risk for lending and make and present a recommendation to help leadership make a loan decision.IntroductionThis portfolio work project will help you complete a thorough review of an organization’s financial performance as well as their level of risk for lending. Your recommendation will help leadership create a loan portfolio, and your executive summary will clearly and concisely communicate your review to others in the organization.ScenarioYou work for an organization that provides loans to businesses. You are working with a client who is requesting a loan that will require a review of financial and related performance documents. You have been asked to review the documents and summarize your findings in a loan recommendation for your management team.You may apply this scenario to either Option 1 or Option 2, described in Requirements below.Your RoleYou are a loan manager for a lending organization, and your responsibilities include reviewing loan requests and providing recommendations in regard to whether the loan requests should be funded.RequirementsOption 1:Your client works for Ace Company. Assume Ace Company requested a $3 million 10-year loan to purchase production equipment and develop accompanying software. Use the Ace Company Data document for this option.Option 2:Use a firm or scenario of your choosing.Before choosing a company, read the assessment thoroughly to ensure:The company fits the assessment requirements.You have access to the financial statements and related performance documents needed to assess risk and make a loan recommendation. You will need information for this year and last year.You can distribute the financial statements and related performance documents without disclosing confidential company information.Loan RecommendationTo arrive at your recommendation, analyze the financial performance of the requesting company and present it to your organization’s upper-management team. The management team will take your recommendation into consideration as they finalize loan requests.Analyze the company's performance and performance trends. Include the following in your analysis:Analyze the trend for accounts receivable collections.Identify the trend.Explain the relevance of the trend.Determine if the trend is improving or getting worse.Compare the company's average inventory turnover to the industry average inventory turnover rate. Note that the average industry turnover rate for Ace Company is 10 times per year.Consider whether the company’s average inventory turnover is higher or lower than the industry average.Explain whether a higher or lower average is better.Determine whether the trend is improving or getting worse.Evaluate the company's short-term and long-term credit worthiness based on financial performance and trend (comparing this year to last year). Include in your evaluation:Information about performance and trends.Information about other relevant financial information you consider important to the decision.Your recommendation regarding whether the bank should grant the loan based on the financial data.Deliverable FormatThe management team of your organization requests this information in the form of a 1–2 page executive summary along with a title page, references page, and appendix of supporting information. The executive summary must highlight the key findings from your review and will provide your recommendation and rationale. The appendix must include data used in your analysis for others to review. Assume that this document is the only communication in regard to your analysis and recommendation and that you will not be with the team to explain anything as it deliberates. In other words, the documentation you provide must be well organized and include information for the management team to clearly see your recommendation and rationale.Related company report standards:The executive summary is a professional document and should therefore follow the corresponding MBA Academic and Professional Document Guidelines, including single-spaced paragraphs.In addition to the executive summary, include:A title page.A references page.Appendix with supporting materials. If you are using a firm or scenario of your choosing, ensure faculty has sufficient information to understand how you reached your recommendation.At least two APA-formatted references.EvaluationBy successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:Competency 1: Explain how accounting concepts and practices impact financial reporting.Analyze the trend for the company’s accounts receivable collections.Compare the company’s average inventory turnover ratio to an industry average.Competency 2: Apply principles of accounting to assess financial performance.Evaluate the company’s short-term and long-term credit worthiness.Competency 4: Communicate financial information with multiple stakeholders.Communicate accounting information clearly.

Comprehensive Accounting ProjectTeam, you have been called in to help Sarah Singer who has operated a part-time graphic design business from her home. Her accountant has decided to quit working for her and Singer has decided she needs a more organized approach to keeping his accounting records. (Singer has kept his accounting records in a big file cabinet). Singer has decided to move to a rented office space and is planning to operate the business on a full-time basis. The business will be known as Sarah's Designs, Inc. Singer also has the following transactions that took place during the month of Sept 20XX:Sept 1. The following assets were received from Sarah Singer in exchange for common stock: Cash, $ 25,800; accounts receivable, $ 4,500; supplies, $2,500 and Office Equipment, $ 16,500. There were no liabilities received.Sept 1. Paid three months' rent in advance on a lease rental contract, $3,600.Sept 2. Paid the premiums on property and casualty insurance policies, $ 1,800. ( The policy is for six months)Sept 4. Received cash from the Gaines Company as an advance payment for services to be provided and it will be recorded as unearned fees for $ 4,200.Sept 5. Purchased a new computer on account from Brown's Computer Nook for $ 3,600. The useful life has been determined to be 5 years.Sept 6. Received cash from clients on account for $ 2,600.Sept 9. Paid cash to the Mason Tribune for a newspaper advertisement, $ 240.Sept 12. Recorded services provided on account to various clients for the period of September 1 thru 12, for $ 5,700.Sept 13. Paid Brown's Computer Nook for part of the liability incurred on Sept 5, $ 690.Sept 14. Paid part-time receptionist for two weeks' salary, $ 1,100.Sept 17. Paid cash for supplies, $ 1,000.Sept 20. Purchased additional office equipment on account from Cabrillo Office Supply store for $ 2,650.Sept 20. Recorded services provided on account to various clients for the period of Sept 13-20, $ 4,360.Sept 24. Received cash from clients for fees earned during the period of Sept 17 thru 24, $ 6,100.Sept 26. Received cash from clients on account from Sept 12 services, $ 2,200.Sept 27. Paid part-time receptionist for two weeks salary, $ 1,100.Sept 29. Paid telephone bill for September, $ 370.Sept 29. Paid electricity bill for September, $ 515.Sept 30. Recorded cash from clients for fees earned for the period of Sept 25-30, $ 3,450.Sept 30. Recorded services provided on account for the remainder of Sept, $ 2,100.Sept 30. Paid dividends of $ 2,500.Possible adjustment data for Sarah's Designs, Inc. as of Sept 30, 20XX:Insurance expired during Sept is $300.Supplies on hand on Sept 30 is $ 2,130.Monthly depreciation of office equipment is $ 320.Monthly depreciation of computer is $ 60Rent expired during Sept is $1,200.Accrued receptionist salary on Sept 30 is $ 200.Unearned fees on Sept 30 is $ 3,600.With this information I need to do:Prepare the closing entriespost the closing entries to the general ledgerprepare the post-closing trial balance