A senior lending officer has provided you with the data below and you have to consider what
Question:
A senior lending officer has provided you with the data below and you have to consider what analysis your wish to undertake. Please discuss pertinent questions that you would ask the senior lending officer before you commence the analysis and provide a rationale for the analyses you wish to undertake. Note: CF_TD (cash flow to total debt), NI_TA (net income to total assets), CA_CL (current assets to current liabilities), CA_NS (current assets to net sales) and F_OR_NF (fail or not fail).
What would you recommend be the primary evaluation system for the loans in the following table? Complete the table by denoting the primary analysis in each box (JA (judgmental analysis) and EA (empirical analysis)). Justify your answer.
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso