You are a loan officer for White Sands Bank of Taos. Paul Jason, president of P. Jason Corporation, has just left your office. He 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, Jason provided you with the following facts.

	2020	2019
Current ratio	3.1	2.1
Asset turnover	2.8	2.2
Net income	Up 32%	Down 8%
Earnings per share	$3.30	$2.50

Jason is a very insistent (some would say pushy) man. When you told him that you would need additional information before making your decision, he acted offended and said, "What more could you possibly want to know?" You responded that, at a minimum, you would need complete, audited financial statements.

Please discuss 1. why the financial statements need to be audited. 2. The implications of the ratios provided in the lending decision you are to make. Does the information paint a favorable picture? Are these ratios relevant to the decision. 3. List three other ratios that you would want to calculate for this company and explain why you would use each.