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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.