Ratio Analysis

The assignment is attacheed with the grading rubric.

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.

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Assignment Steps

Resources: 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.

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.

Develop a minimum 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 not.

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

• 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.

• 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 Corporation, will you recommend approval for the
requested loan? Provide specific details to support your decision.

Format the assignment consistent with APA guidelines.

Click the Assignment Files tab to submit your assignment.

Materials

Ratio Analysis Grading Guide

Resources: Center for Writing Excellence Reference and Citation Generator Grammar and Writing Guides Learning Team Toolkit

Copyright ©2018 by University of Phoenix. All rights reserved.

ACC/561 » Assignment US/Arizona Time: Feb 01, 2018, 12:04 PM ACC/561 (MBBB1NITI4)

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Ratio Analysis

Due Feb 05, 11:59 PM Not Submitted POINTS 6 Scenario 3.1 3.2 3.3

Instructions Assignment Files Grading

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Ratio Analysis

Grading Guide

ACC/561 Version 7

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Ratio Analysis Grading Guide

ACC/561 Version 7

Accounting

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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
4	#/4

Met

Partially Met

Not Met

Comments:

Total Available

Total Earned

 

Writing Guidelines
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.
2	#/2

Assignment Total	#	6	#/6
Additional comments: