If you were a bank looking to provide a loan to a construction company, what is...
If you were a bank looking to provide a loan to a construction company, what is the maximum value of current liabilities that would be acceptable if the company has $5,821,145 of current assets? (Hint: use the industry standard set for one of the financial ratios)
Homework Answers
As per Industry Insights Inc (US) Report (CFMA 2018), Current Ratio for All Industries is 1.60.
Current ratio = Current assets / Current liabilities
1.6 = $5,821,145 / Current liabilities
Current liabilities = $5,821,145 / 1.6 = $3,638,216
As per Industry Insights Inc (US) Report (CFMA 2018), Current Ratio for All Industries is 1.60.
Current ratio = Current assets / Current liabilities
1.6 = $5,821,145 / Current liabilities
Current liabilities = $5,821,145 / 1.6 = $3,638,216
Add Answer to:
If you were a bank looking to provide a loan to a construction
company, what is...
Directions Precision company wishes to expand but needs a $300,000 loan. The bank requests that Precision...
Directions
Precision company wishes to expand but needs a $300,000 loan.
The bank requests that Precision prepare a balance sheet and key
financial ratios. Precision has kept formal records and is able to
provide financial statements as of December 31, 2017. The industry
debt ratio averages 45.00%. The industry return on assets is 2.0%.
Use the Precision Co. financial statements and Memo template below
to complete the requirements.
A. You represent the bank and will present your findings in a...
a) If you were a creditor, could you give short term loan to SPRING company? Give...
a) If you were a creditor, could you give short term
loan to SPRING company?
Give reasons, compare with generally accepted accounting standards,
find net working capital and discuss the Five C's of credit.
b) Calculate the operating cycle for the company and
evaluate the efficiency of the corporation.
c) How could you evaluate the profitability position
of that company?
1PUESTIONS (3) The first three questions are elated with the FALL CoMpany Compute the actual 2013 fnancial ratios listed abeve...
You are the loan officer at Corner Street Community Bank. You received a loan application from...
You are the loan officer at Corner Street Community Bank. You
received a loan application from T.P. Jarmon Company. The first
picture is for financial statements that belong to the most recent
fiscal year(s). The second picture provides financial ratios for
the industry. Analyze these financial statements in terms of
liquidity, profitability and solvency. Give an opinion on whether
you would approve the loan application or not in great detail.
2013 T. P. Jarmon Company, Balance Sheet for 12/31/2012 and...
a) If you were a creditor, could you give short term loan to SPRING company? Give...
a) If you were a creditor, could you give short term
loan to SPRING company? Give reasons, compare with generally
accepted accounting standards, find net working capital and discuss
the Five C's of credit.
b) Calculate the operating cycle for the company and evaluate the
efficiency of the corporation.
c) How could you evaluate the profitability position
of that company?
please explain all details.
a, b and c questions are related with FALL company.
Compute the actual 2013 financial ratios...
1. Assume you are an agricultural loan officer for a bank, and a customer requests a...
1. Assume you are an agricultural loan officer for a bank, and a customer requests a loan based on the following balance sheet. Conduct a ratio analysis and give your reasons for granting or denying an additional loan. What is the weakest part of this customer's financial condition? Assets Current Assets Noncurrent Assets $40,000 $160,000 $40,000 $60,000 Liabilities Current Liabilities Noncurrent Liabilities Total Liabilities Owner Equity Total Liabilities plus Equity $100,000 $100,000 $200,000 Total Assets $200,000
1. Assume you are an agricultural loan officer for a bank, and a customer requests a...
1. Assume you are an agricultural loan officer for a bank, and a customer requests a loan based on the following balance sheet. Conduct a ratio analysis and give your reasons for granting or denying an additional loan. What is the weakest part of this customer's financial condition? Assets Current Assets Noncurrent Assets $40,000 $160,000 $40,000 $60,000 Liabilities Current Liabilities Noncurrent Liabilities Total Liabilities Owner Equity Total Liabilities plus Equity $100,000 $100,000 $200,000 Total Assets $200,000
8. Assume you are an agricultural loan officer for a bank, and a customer requests a...
8. Assume you are an agricultural loan officer for a bank, and a customer requests a loan based on the following balance sheet (unit: thousand dollar). Conduct a ratio analysis and give your reason for granting or denying an additional loan. What is the weakest part of this customer's financial condition? Ms. Pattanaik Assets Liabilities Current Assets $40 Current Liabilities $60 Noncurrent Assets 240 Noncurrent Liabilities 50 Total Liabilities $110 Owner's Equity 170 Total Assets $280 Total Liabilities and Owner's...
As loan analyst for Oriole Bank, you have been presented the following information. Toulouse Co. Lautrec...
As loan analyst for Oriole Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets SUS Cash $114,000 $330,000 Receivables 229,000 301.000 Inventories 597,000 531,000 Total current assets 940,000 1,162,000 Other assets 479,000 587,000 Total assets $1,419,000 $1,749,000 Liabilities and Stockholders' Equity. Current liabilities Long-term liabilities $314,000 402,000 703.000 $345,000 479,000 925,000 Capital stock and retained earnings Total liabilities and stockholders' equity $1,419,000 $1,749,000 Annual sales $936,000 $1,564,000 Rate of gross profit on sales 30% 40% Each...
Exercise 24-4 As loan analyst for Utrillo Bank, you have been presented the following information. Toulouse...
Exercise 24-4 As loan analyst for Utrillo Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Cash Receivables Inventories $120,800 224,800 578,100 $326,900 307,100 512,200 1,146,200 Total current assets Other assets 923,700 .200 617,600 502,700 $1,426,400 Total assets $1,763,800 Current liabilities Long-term liabilities Capital stock and retained earnings $290,300 397,700 738,400 $1,426,400 $931,700 $350,000 502,700 911,100 $1,763,800 $1,504,600 Total liabilities and stockholders equity Annual sales Rate of gross profit on sales 25 % 40% Each of these...
Exercise 24-04 As loan analyst for Bramble Bank, you have been presented the following information. Toulouse...
Exercise 24-04 As loan analyst for Bramble Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash Receivables Inventories Total current assets Other assets Total assets $116,000 226,000 564,000 906,000 505,000 $1,411,000 $332,000 315,000 541,000 1,188,000 595,000 $1,783,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales $291,000 386,000 734,000 $1,411,000 $918,000 30 % $361,000 505,000 917,000 $1,783,000 $1,556,000...
Directions
Precision company wishes to expand but needs a $300,000 loan.
The bank requests that Precision prepare a balance sheet and key
financial ratios. Precision has kept formal records and is able to
provide financial statements as of December 31, 2017. The industry
debt ratio averages 45.00%. The industry return on assets is 2.0%.
Use the Precision Co. financial statements and Memo template below
to complete the requirements.
A. You represent the bank and will present your findings in a...
a) If you were a creditor, could you give short term
loan to SPRING company?
Give reasons, compare with generally accepted accounting standards,
find net working capital and discuss the Five C's of credit.
b) Calculate the operating cycle for the company and
evaluate the efficiency of the corporation.
c) How could you evaluate the profitability position
of that company?
1PUESTIONS (3) The first three questions are elated with the FALL CoMpany Compute the actual 2013 fnancial ratios listed abeve...
You are the loan officer at Corner Street Community Bank. You
received a loan application from T.P. Jarmon Company. The first
picture is for financial statements that belong to the most recent
fiscal year(s). The second picture provides financial ratios for
the industry. Analyze these financial statements in terms of
liquidity, profitability and solvency. Give an opinion on whether
you would approve the loan application or not in great detail.
2013 T. P. Jarmon Company, Balance Sheet for 12/31/2012 and...
a) If you were a creditor, could you give short term
loan to SPRING company? Give reasons, compare with generally
accepted accounting standards, find net working capital and discuss
the Five C's of credit.
b) Calculate the operating cycle for the company and evaluate the
efficiency of the corporation.
c) How could you evaluate the profitability position
of that company?
please explain all details.
a, b and c questions are related with FALL company.
Compute the actual 2013 financial ratios...
1. Assume you are an agricultural loan officer for a bank, and a customer requests a loan based on the following balance sheet. Conduct a ratio analysis and give your reasons for granting or denying an additional loan. What is the weakest part of this customer's financial condition? Assets Current Assets Noncurrent Assets $40,000 $160,000 $40,000 $60,000 Liabilities Current Liabilities Noncurrent Liabilities Total Liabilities Owner Equity Total Liabilities plus Equity $100,000 $100,000 $200,000 Total Assets $200,000
1. Assume you are an agricultural loan officer for a bank, and a customer requests a loan based on the following balance sheet. Conduct a ratio analysis and give your reasons for granting or denying an additional loan. What is the weakest part of this customer's financial condition? Assets Current Assets Noncurrent Assets $40,000 $160,000 $40,000 $60,000 Liabilities Current Liabilities Noncurrent Liabilities Total Liabilities Owner Equity Total Liabilities plus Equity $100,000 $100,000 $200,000 Total Assets $200,000
8. Assume you are an agricultural loan officer for a bank, and a customer requests a loan based on the following balance sheet (unit: thousand dollar). Conduct a ratio analysis and give your reason for granting or denying an additional loan. What is the weakest part of this customer's financial condition? Ms. Pattanaik Assets Liabilities Current Assets $40 Current Liabilities $60 Noncurrent Assets 240 Noncurrent Liabilities 50 Total Liabilities $110 Owner's Equity 170 Total Assets $280 Total Liabilities and Owner's...
As loan analyst for Oriole Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets SUS Cash $114,000 $330,000 Receivables 229,000 301.000 Inventories 597,000 531,000 Total current assets 940,000 1,162,000 Other assets 479,000 587,000 Total assets $1,419,000 $1,749,000 Liabilities and Stockholders' Equity. Current liabilities Long-term liabilities $314,000 402,000 703.000 $345,000 479,000 925,000 Capital stock and retained earnings Total liabilities and stockholders' equity $1,419,000 $1,749,000 Annual sales $936,000 $1,564,000 Rate of gross profit on sales 30% 40% Each...
Exercise 24-4 As loan analyst for Utrillo Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Cash Receivables Inventories $120,800 224,800 578,100 $326,900 307,100 512,200 1,146,200 Total current assets Other assets 923,700 .200 617,600 502,700 $1,426,400 Total assets $1,763,800 Current liabilities Long-term liabilities Capital stock and retained earnings $290,300 397,700 738,400 $1,426,400 $931,700 $350,000 502,700 911,100 $1,763,800 $1,504,600 Total liabilities and stockholders equity Annual sales Rate of gross profit on sales 25 % 40% Each of these...
Exercise 24-04 As loan analyst for Bramble Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash Receivables Inventories Total current assets Other assets Total assets $116,000 226,000 564,000 906,000 505,000 $1,411,000 $332,000 315,000 541,000 1,188,000 595,000 $1,783,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales $291,000 386,000 734,000 $1,411,000 $918,000 30 % $361,000 505,000 917,000 $1,783,000 $1,556,000...
Most questions answered within 3 hours.
-
Write a script in MySQL that creates and calls a stored
procedure name test. This procedure...
asked 6 minutes ago -
Estimating effect size. Peng and Chen (2014)
evaluated effect size estimates for various tests. In their...
asked 5 minutes ago -
If we test the following: H0: μ = 17
vs. H1: μ ≠ 17 and the...
asked 16 minutes ago -
in the past year TVG had revenues of 3 million, cost
of goods sold of $25...
asked 22 minutes ago -
4) In a polypeptide, which bond cannot rotate because of its
partial double bond character?
The...
asked 54 minutes ago -
Assume that in the short run L = 1,000 and K = 100. 1. What is...
asked 49 minutes ago -
At a given temperature, 2.06 atm of H2 and 3.7 atm of Br2 are
mixed and...
asked 48 minutes ago -
Sodium reacts with Hydrochloric acid to form sodium chloride and
hydrogen gas. 2Na(s)+ 2 HCl(aq)-> 2...
asked 55 minutes ago -
The following circuits (1 & 2) are combined to form a
series-parallel circuit and resulting circuit...
asked 1 hour ago -
Feynman's use of path integrals can make some of the transition
from quantum scale to real...
asked 1 hour ago -
Pb(NO3)2 (aq) + 2 KCl (aq) PbCl2 (s) + 2 KNO3 (aq)
If 54.5mL of 3.82M...
asked 1 hour ago -
Razeghi (2008) states "In order to succeed at innovation, do not
focus on being creative; rather...
asked 1 hour ago