Posted: February 16th, 2017

Describe how a bank lending officer might use ratio analysis. Select five ratios that would be most useful for the purpose and explain ththe rationale for your selection.

eate a balance sheet from a trial balance for a given scenario. Make sure you classify the accounts appropriately as current or non-current. Perform inventory valuations using LIFO, FIFO, and weighted average methods based on the following information. Explain the impact of each method on the cost of goods sold and ending inventory. The company imports microwaves from a supplier in China for the US market. At the end of the first quarter, 100 microwaves are in stock. The company purchased a total of 400 microwaves during the quarter at various prices: January: 100 units @ $75 February: 250 units @ $83 March: 50 units @ $87 The company had no inventory at the beginning of the quarter. If the company’s goal is to maximize net income, which evaluation method will you use and why?

Based on the financial information provided, calculate the following ratios and explain their purpose: Current Ratio Inventory Turnover Ratio Accounts Receivable Turnover Ratio Debt to Equity Ratio Return on Assets Ratio Asset Turnover Ratio Return on Equity Ratio Profit Margin Ratio Price-Earnings Ratio Dividend Yield Ratio

When a balance sheet amount is related to an income statement amount in computing a ratio, the balance sheet amount should be an average of that Criteria Points Assigned Points Earned Did you calculate the 10 ratios (8 points for each)? 80% Criteria Points Assigned Points Earned Did you explain which ratios could be used by a bank lending officer and why? Description/Requirements of Project Part Evaluation Criteria period. The average is calculated by adding the ending balances of this year and last year and dividing the result by 2. Describe how a bank lending officer might use ratio analysis. Select five ratios that would be most useful for the purpose and explain ththe rationale for your selection.