The Finance Industry and Financial Reports

profilelistlo

 

  •  

Do Numbers Lie? The Other Side of Financial Statement Analysis

If you were to enter the banking industry you may find yourself approving or not approving loans. The following is a good example of a common event you may encounter.

Company X is looking for a $100,000 to purchase new equipment. The finance manager for Company X recently presented financial reports. Upon further analysis of the statements you, the banker, noted some window dressing of the financial statement. In this case it seems Company X will delay payments to vendors in order to make their cash position look higher.

  • Do you see this practice a matter of ethical and or legal concern?
  • Do you think most all company’s “window dress” their data?

Please explain your decision to approve or disapprove Company x’s loan.

Need by 25 Sep 2015 by 1200 EST

 

    • 9 years ago
    • 2
    Answer(1)

    Purchase the answer to view it

    blurred-text
    • attachment
      the_finance_industry_and_financial_reports.docx