American Military University Financial Statements Acquiring Loans from Banks Essay
Question Description
Answer the following case questions with the attached scenario. No specific format or word count. 2 references
Speaking as a loan officer, you may use the case of these two borrowers to illustrate the points you make in this discussion.
-Briefly discuss why firms issue financial statements, considering any one category of user interested in these statements.
-Using any one type of financial ratio as an illustration, explain how financial statements offer a picture of a firm’s ability to serve as a good manager of invested funds.
-Discuss any one financial ratio that a financial institution might use to evaluate the the suitability of an applicant for a personal loan (as an example of one ratio, search for the term “debt-to-income ratio”).
-Discuss the similarities between a corporate income statement and balance sheet and the documentation required of a mortgage loan applicant.