# Ratio analysis

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC), Scenario Worksheet Tutorial aid on Excel® and Word functions can be set-up on the Microsoft Duty website. There are to-boot appended tutorials via the web subsidy subsistence for Duty products.  Scenario: You are a hypothecation functionary for White Sands Bank of Taos. Paul Jason, superintendent of P. Jason Corporation, has reasonable left your duty. He is ardent in an 8-year hypothecation to develop the company's operations. The adventitious funds would be used to donation new equipment. As deposition of the company's debt-worthiness, Jason supposing you delay facts (beneficial in the fixed Scenario Worksheet). Jason is a very insistent (some would say pushy) man. When you told him you would deficiency appended notice precedently making your judgment, he acted offended and said, "What further could you perhaps nonproduction to understand?" You responded you would , at narrowness, deficiency total, audited financial statements.  Develop a 600-word trial of the financial statements and embrace the following: Explain why you would nonproduction the financial statements to be audited. Discuss the implications of the ratios supposing for the lending judgment you are to perform. That is, does the notice sketch a indulgent represent? Are these ratios bearing to the judgment? State why or why not. Evaluate trends in the deed of P. Jason Corporation. Identify each deed gauge as indulgent or unindulgent and clear-up the meaning of each. List three other ratios you would nonproduction to weigh for P. Jason Corporation, and in your own vote clear-up in point why you would use each. As the hypothecation functionary, what else would you do to perform a improve intelligence of Paul Jason's, and the Corporation's financial represent and why? Based on your separation of P. Jason Corporation, gain you commend eulogy for the requested hypothecation? Provide specific points to subsistence your judgment.