Sams' financial condition. Far more data is required to make an informed decision about a loan. It would be helpful to know if the company's financial statements are audited. It would be essential to review at least three consecutive years of Balance Sheets for your functionality of trend and comparative analysis.
The company's assets are concentrated in merchandise inventories so the loan officer would desire to calculate the inventory turnover ratio. L.L. Sams might be turning inventory quickly, or it could possibly be the situation that inventory levels are high simply because the company has trouble selling its inventory. Additional info required to evaluate this loan applicant would include Money Statements for ones last 3 years, as well as the Statements of Dollars Flow.
In a Land $169,000 Owner's Equity $70,000 The Balance Sheet for Melinda Garcia Job Services for August 31, 20X4 is shown below: Total assets $244,000 Liab. & Equity $244,000 dition, as component of their due diligence the loan officer would need to read and evaluate the explanatory notes to these financial statements. The loan officer would also desire to know if any or all the company's assets were pledged to creditors, and whether these creditors had perfected their security interest by filing a UCC-1 financing statement. Cash $11,000 Accounts Payable $6,000 Current assets for this business are $18,000. Contemporary liabilities are $174,000.
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