You are a loan officer for Great Plains Bank of Davenport. David Miller, president of D. Miller...

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You are a loan officer for Great Plains Bank of Davenport. David Miller, president of D. Miller 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, Miller provided you with the following facts.

2012

2011

Current ratio

3.1

2.1

Asset turnover ratio

2.8

2.2

Cash debt coverage ratio

.1

.2

Net income

Up 32%

Down 8%

Earnings per share

$3.30

$2.50

Robert · Accepted Answer

Description 
You are a loan officer for Great Plains Bank of Davenport. David Miller, president 
of D. Miller 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, Miller 
provided you with the following facts. 
 
2012 2011 
Current ratio 3.1 2.1 
Asset turnover ratio 2.8 2.2 
Cash debt coverage ratio .1 .2 
Net income Up 32% Down 8% 
Earnings per share $3.30 $2.

You are a loan officer for Great Plains Bank of Davenport. David Miller, president of D. Miller Corporation, has just left your office. He is interested in an 8-year loan to expand the company"s...

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