60.1K

Verified Solution

Link Copied!

Your company has decided it wants to expand the business. In order to expand, you realize that you will need to get a loan from your bank. To get approved for a loan, your company must show the bank that the companys stockholders equity has grown. You and your banker agree that you will meet again in one week.

Prepare a report of your assessment of your companys business that you will present to the banker. Revenue $250,000

1. Use the updated general ledger balances prepared previously to prepare the following financial statements [in proper order]: Income Statement Statement of Retained Earnings Balance sheet

2. Use the informa/on on the &nancial statements to answer the following ques/ons:

a. Was your company pro&table in 2020?

b. Has the stockholders equity grown?

c. Can you expect to be approved for the loan? Give your reasons for your response. [Hint:Calculang some appropriate liquidity raos, such as current rao, cash rao, acid-test rao, etc. may help.]

3. If your company plans to establish another branch of the business in Panama City, Panama, what accoun/ng standards will the company use to record the accoun/ng ac/vi/es and prepare the financial statements Report

Format:I.

Cover page II.

Introducon giving the premise of the assignment/stang the purpose

III. Problem Iden&ca

onIV. Data Analysis including the &nancial statements

V. Recommendaon VI. Conclusion

Answer & Explanation Solved by verified expert

See Answer