Week3RatioassgnACC561.docx

Week3RatioassgnACC561.docx - Ratio Analysis 1 Individual...

This preview shows page 1 - 3 out of 4 pages.

Ratio Analysis 1 Individual: Ratio Analysis LaToya Mays ACC 561 March 4, 2019 Prof. David Duren
Image of page 1

Subscribe to view the full document.

Ratio Analysis 2 Ratio Analysis A ratio analysis evaluates the financial health and performance of a company in various financial areas. The ratio analysis can be conducted in many areas such as efficiency, liquidity, profitability, and solvency. The data from a ratio analysis is easily computed and helps the comparison of like businesses compare financial analysis that prepares a plan to help the company remain profitable and establish a healthy financial status. The student acting as the loan officer will examine the financial statements given in the scenario of P. Jason Corporation requesting a loan over 8 years to expand operations. Loan Scenario Paul Jason has come to White Sands Bank of Taos to request an 8-year loan to expand his company, P. Jason Corporation with their operations in which the loan will be utilized to purchase new equipment. The P. Jason Corporation has provided the loan officer with current ratios, asset turnovers, net income, and earnings per share for 2016 and 2017. Why Financial Statements are Audited A financial audit conducted by an independent auditor provides credibility of a company’s financials and disclosures. The auditor reports their results that verify the fairness of
Image of page 2
Image of page 3

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern