You are a loan officer for The National Bank. Trish Jones, president of Jones Corporation, has just left your office. She is interested in an 8-year loan to expand the company's operations. The borrowed funds would be used to purchase new equipment. As evidence of the company's debt-worthiness, Trish provided you with "facts".

2019 2018

Current Ratio 2.75 2.65

Asset Turnover 3.15 3.14

Profitability Ration 20% 10%

Earning Per Share 4.50 4.50

When you told Trish you would need additional information before making your decision, she said, "What more could you possibly want to know?" Explain how these ratios are relevant [Note: not all of them are] to the bank's decision Discuss the implications of the ratios provided for the lending decision you are to make. Evaluate trends in the performance of Jones Corporation based on what you have now. List three other ratios you would want to calculate for Jones Corporation, and explain in detail why you would use each. Based on your analysis of Jones Corporation, will you recommend approval for the requested loan? Provide specific details to support your decision.