Answered step by step
Verified Expert Solution
Question
1 Approved Answer
As loan analyst for Headland Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $124,000 $328,000 Receivables 212,000 295,000
As loan analyst for Headland Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $124,000 $328,000 Receivables 212,000 295,000 Inventories 598,000 539,000 Total current assets 934,000 1,162,000 Other assets 490,000 615,000 Total assets $1,424,000 $1,777,000 Liabilities and Stockholders' Equity Current liabilities $301,000 $366,000 Long-term liabilities 393,000 490,000 Capital stock and retained earnings 730,000 921,000 Total liabilities and stockholders' equity $1,424,000 $1,777,000 Annual sales $971,000 $1,469,000 Rate of gross profit on sales 30 % 40 % Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, e.g. 2.25.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started