you are a loan officer for white sands bank of Toas. Paul Jason, president of P ajason 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 th following facts:

2017 2018 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's a very insistent (some would say pushy) man. When you told him you would need additional information before making your decision, he acted offended and said, "what more could you possibly want to know?" You responded you would, at a minimum, need complete audited financial statements.

Develop a minimum of 700 word examination of the financial statements and include the following:

Explain why you would want the financial statements to be audited.

Discuss the implications of the ratios provided for the lending decision you are to make.That is, does the information paint a favorable picture? Are these ratios relevant to the decision? State why or why.

Evaluate trends in the performance of P. Jason Corporstion. Identify each performance measure as favorable or unfavorable and explain the significance of each.

List 3 other ratios you would want to calculate for P. Jason Corporation, and in your own words explain in detail why you would use each.

As the loan officer, what else would you do to gain a better understanding of Paul Jason's, and the Corporation's financial picture and why?

Based on your analysis of P. Jason's Corporation, will you recommend approval for the requested loan? Provide specific details to support your decision.