Assignment Content 1. Top of Form Purpose of Assignment This week's focus is on the...

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Assignment Content  1.     Top of Form    Purpose of Assignment  This week's focus is on the preparation of financial reports for internal users, such as managers. This case study applies the concepts of managerial accounting, through comparative and ratio analysis, and requires students to identify financial data needed by managers for decision making.    Resources  o Ratio Analysis Grading Guide  o Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC)  o Scenario WorksheetTutorial help on Exceland Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products.    Assignment Steps  Scenario: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 facts (available in the attached Scenario Worksheet). Jason is 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 minimum, need complete, audited financial statements.    Developa minimum 700-word examination of the financial statements and include the following:  o Explain why you would want the financial statements to be audited.  o 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 not.  o Evaluate trends in the performance of P. Jason Corporation. Identify each performance measure as favorable or unfavorable and explain the significance of each.  o List three other ratios you would want to calculate for P. Jason Corporation, and in your own words explain in detail why you would use each.  o 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?  o Based on your analysis of P. Jason Corporation, will you recommend approval for the requested loan? Provide specific details to support your decision.    Formatthe assignment according to APA guidelines.    Submit your assignment.                  Individual Assignment: Ratio Analysis    Purpose of Assignment    This week’s focus is on the preparation of financial reports for internal users, such as managers. This case study applies the concepts of managerial accounting, through comparative and ratio analysis, and requires students to identify financial data needed by managers for decision making.    Resources Required    Generally Accepted Accounting Principles (GAAP)   U.S. Securities and Exchange Committee (SEC)    Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.  Grading Guide                   Content            Met            Partially Met            Not Met            Comments:                 Explained why student would want the   financial statements to be audited.                                                 Discussed the implications of the ratios provided for the lending   decision about to be made. That is, did   the information paint a favorable picture?   Answered the following question:      ·   Are these ratios relevant to the   decision? Stated why or why not.                                                 Evaluated trends in the performance of P. Jason   Corporation. Identified each performance measure as favorable or unfavorable   and explained the significance of each.                                                 Listed three other ratios that student would want to   calculate for P. Jason Corporation, and in own words explained in detail why student   would use each.                                                 Answered the following   question:    ·   As the loan officer, what else would student   do to gain a better understanding of   Paul Jason’s, and the Corporation’s financial picture and why?                                                 Answered the following   question:    ·   Based on student’s analysis of P. Jason   Corporation, would student recommend   approval for the requested loan? Provided specific details to support decision.                                                 The examination is a minimum   700 words in length.                                                                         Total   Available         Total Earned                                        85         #/85                                      Writing    Guidelines            Met            Partially Met            Not Met            Comments:                 The paper—including tables and graphs, headings, title   page, and reference page—is consistent with APA formatting guidelines and   meets course-level requirements.                                                 Intellectual property is recognized with in-text citations   and a reference page.                                                 Paragraph and sentence transitions are present, logical,   and maintain the flow throughout the paper.                                                 Sentences are complete, clear, and concise.                                                 Rules of grammar and usage are followed including spelling   and punctuation.                                                                   Total   Available         Total Earned                                        35         #35                                      Assignment Total            #            120            #/120                             Additional comments:                                   SCENARIO WORKSHEET    University of Phoenix Material       Scenario:    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:                   2017         2016             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 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 minimum, need complete, audited financial statements.

Akash · Accepted Answer

Running Head: RATIO ANALYSIS		1
RATIO ANALYSIS		2
RATIO ANALYSIS
Table of Contents
1)	3
2)	3
3)	3
4)	4
5)	4
6)	5
References	6
1) 
The auditor provides a view on the true and fair view of the financial statements of the entity. Therefore, audited financial statements indicate that there are no discrepancies in the financial statement and the same provide a fair view of the position of the entity. Therefore, the financial statements should be audited so that the loan officer can assess the credit worthiness of P. Jason Corporation effectively. 
2)
The financial ratios provide a clear picture of the entity in an effective manner. In the given scenario, the ratios provided are current ratio, which is an indicator of liquidity in the organization. On the other hand, as argued by Dimitras, Gaganis and Pasiouras (2018), the asset turnover ratio informs the credit officer regarding the efficient use of assets in the company. Earnings per share has also been provided which indicates the revenue per share of the company. 
As commented by Fernandez (2019), net income indicates the profitability status and efficiency of the company in using the funds invested in the company. The ratios are relevant for effective decision making for the credit officer. However, ratios like debt equity ratio, net operating margin and other will also be required for appraisal of credit worthiness of the company. The given ratios are relevant for decision-making but the same does not provide a complete scenario of the credit worthiness of P. Jason Corporation.
3)
From the given information,

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Individual Assignment: Ratio Analysis

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