User Account

All Pages

Describe trends in the performance of p jason corporation

Assignment Help Auditing
Reference no: EM131523855

Accounting Assignment

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.

Reference no: EM131523855

Questions Cloud

Discuss an important element of creativity : The point is often made that formal schooling can actually discourage young children from following their natural curiosity.
Evaluate external influences that affect consumer behavior : Analyze the concepts of consumer behavior, changes, and their effect on marketing.Evaluate external influences that affect consumer behavior.
Discuss best method for resolving the issue : Using the five step decision making process outlined below, create a plan of action to improve in those areas
Evaluation of your team members : Evaluation of your team members. If you believe that a team member has con­tributed fully, they should be evaluated at 100%.
Describe trends in the performance of p jason corporation : Describe trends in the performance of P. Jason Corporation. Identify each performance measure as favorable or unfavorable and explain the significance of each.
Flood-proofing of the building : You have been brought in as a consultant to determine whether flood-proofing of the building is economically justified.
Create list of alternatives for improving automotive safety : Use the means-objectives network in Figure to create a list of alternatives for improving automotive safety.
Regulated sectors of the economy : Explain why the financial system is one of the most highly regulated sectors of the economy.
Rising expenditures will contribute to rising deficits : Under which conditions might this happen and what is the likelihood that rising expenditures will contribute to rising deficits?

Reviews

Write a Review

 

Auditing Questions & Answers

  Identify which of components of audit risk are affected

For each of the scenarios above, identify which of the components of audit risk (inherent, control or detection risk) are affected. In your answer you will need to justify you choice.

  Identify any breach committed by the auditors

Identify any breach committed by the Auditors under the Corporations Act 2001 and APES 110- Code of Ethics for Professional Accountants - use analytical procedures to support your financial statement analysis and identify which were the major fac..

  Write a cholecystectomy audit report

Write a Cholecystectomy Audit report

  Internal control at drotos theaters

Your CPA firm has just been engaged as the independent auditors for Drotos Theaters. The theater chain is opening a new theater in one month.

  Analysis of the auditing and accountability issues

Prepare a seven minutes video: on an auditing scandal, where students can act themselves or use material available to summarise the auditing scandal.

  Floor value of inventory-lcm rule

What are the "tests" used to determine the ceiling and the floor to which the market value of the inventory is applied in order to determine what the "market" value is to the company?

  Advantages and disadvantages of lifo

FIFO means "first in, first out." This follows the assumption that the first items received into inventory are the first items sold. In some cases, this may not be true because companies often have to sell new items after old ones have become outd..

  What are the potential benefits of a post-audit

What advantages does the profitability index provide over direct comparison of net present value when comparing two projects? What is a post-audit? What are the potential benefits of a post-audit?

  Objectives understanding planning stage of the audit

objectives understanding planning stage of the audit processnbsp review of client business and perform audit risk

  Objective of using probability proportional

The objective of using probability proportional to size sampling (PPS) to test account balances 5% or lower similarity bullet point (around 7-8) no paragraphs

  1middot use what you have learned through chapter 7 of

1middot use what you have learned through chapter 7 of executive roadmap to fraud prevention and internal control text

  Problem for the auditor and the potential impact

Identify the unresolved problems which need to be addressed and discuss why each is a problem for the auditor and the potential impact of each on the financial statements.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd