Assume you are a loan officer for a bank and Frank Farmer requests a loan based...
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Assume you are a loan officer for a bank and Frank Farmer requests a loan based on her balance sheet shown below. I would suggest working on another piece of paper and then transferring all of your work to this homework sheet. A. Conduct a ratio analysis (below) B. Assess each of the ratios financial condition (Poor/Fair/Good). C. What is the weakest part of this balance sheet? D. Will you grant or deny an additional loan? Give clear reasons as to how and why you made this decision. Assets Liabilities Current assets Intermediate assets $240,000 $200,000 $800,000 Current liabilities $240,000 $40,000 $160,000 $440,000 Intermediate liabilities Fixed assets Long-term liabilities Total liabilities Net worth Total liabilities + net worth $800,000 $1.240.000 Total assets $1,240.000 wer. Calculate the ratios and specify their respective financial condition (Poor/Fair/Good) i. Current ratio: ii. Working capital: iii. Debt structure: Assume you are a loan officer for a bank and Frank Farmer requests a loan based on her balance sheet shown below. I would suggest working on another piece of paper and then transferring all of your work to this homework sheet. A. Conduct a ratio analysis (below) B. Assess each of the ratios financial condition (Poor/Fair/Good). C. What is the weakest part of this balance sheet? D. Will you grant or deny an additional loan? Give clear reasons as to how and why you made this decision. Assets Liabilities Current assets Intermediate assets $240,000 $200,000 $800,000 Current liabilities $240,000 $40,000 $160,000 $440,000 Intermediate liabilities Fixed assets Long-term liabilities Total liabilities Net worth Total liabilities + net worth $800,000 $1.240.000 Total assets $1,240.000 wer. Calculate the ratios and specify their respective financial condition (Poor/Fair/Good) i. Current ratio: ii. Working capital: iii. Debt structure:
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Current Ratio Current AssetsCurrent Liabilities 2400002400001 Wor... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078025778
17th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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