Question
As an analyst for National Bank, it is your job to write recommendations to the bank loan committee. Curry Company has submitted the summary at
As an analyst for National Bank, it is your job to write recommendations to the bank loan committee. Curry Company has submitted the summary at top of the page to support Curry’s request for a $100,000 loan.
Required
Analyze these financial statement data to decide whether the bank should lend $100,000 to Curry Company. Write a one-paragraph recommendation to the loan committee.
Income Statement Data: 19X5 19X4 19X3
Total Revenue 850,000 770,000 720,000
Total Expenses 640,000 570,000 540,000
Net Income 210,000 200,000 180,000
Statement of Owner’s Equity Data; 19X5 19X4 19X3
Beginning capital 450,000 390,000 330,000
Add Net Income 210,000 200,000 180,000
660,000 590,000 510,000
Less: Withdrawals 160,000 140,000 120,000
Ending capital 500,000 450,000 390,000
Balance Sheet Data: 19X5 19X4 19X3
Total assets 740,000 670,000 590,000
Total liabilities 240,000 220,000 200,000
Total Owner’s equity 500,000 450,000 390,000
Total liabilities and owner’s equity 740,000 670,000 590,000
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
Step 1 While disbursing loan to a company points such as existing liabilities business prospects wit...
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
