# financial reports for internal users, such as managers Ratio Analysis

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## Description

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.

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Ratio Analysis
Name
Institution
Date

RATIO ANALYSIS

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Introduction

As the loan officer for White Sands Bank of Taos it is my duty to assess, approve as well
as endorse individual and business loan requests for authorization. Paul Jason, president of P.
Jason Corporation whom I have just met recently, has asked for a loan to buy new equipment.
Even though he has presented the current ratio, asset turnover, net income and earnings per share
for last year and this year, I still require more information before making my decision.
Audit of Financial Statements
Audit of financial statements is the analysis of the financial reports by an independent
accountant. The self-governing auditor also surveys the associated releases. He or she is
responsible for preparing a statement in which he verifies the impartiality of presentation of
financial reports and discoveries (Badolato, Donelson & Ege, 2014). The audit statement
organized by the sovereign auditor makes the financial statements and financial status of the
organization more reliable. The reviewed financial statements are useful for the financiers to
e...

### Review

Anonymous
Just what I needed…Fantastic!

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