As an analyst for National Bank, it is your job to write recommendation to the bank loan committee. Curry Company has submitted the summary at top of page to support Curry’s request for $100,000 loan. Required Analyze these financial statement data to decide whether the bank should lend $100,000 to Curry Company. Write a one- paragraph recommendation to the loan committee. Income Statement Data: 19X5 19X4 19X3 Total Revenue 850,000 770,000 720,000 Total Expenses 640,000 570,000 540,000 Net Income 210,000 200,000 180,000 Statement of Owner’s Equity Data; 19X5 19X4 19X3 Beginning capital 450,000 390,000 330,000 Add Net Income 210,000 200,000 180,000 660,000 590,000 510,000 Less: Withdrawals 160,000 140,000 120,000 Ending capital 500,000 450,000 390,000 Balance Sheet Data: 19X5 19X4 19X3 Total assets 740,000 670,000 590,000 Total liabilities 240,000 220,000 200,000 Total Owner’s equity 500,000 450,000 390,000 Total liabilities and owner’s equity 740,000 670,000 590,000
As an analyst for National Bank, it is your job to write recommendation to the bank loan committee. Curry Company has submitted the summary at top of page to support Curry’s request for $100,000 loan.
Required
Analyze these financial statement data to decide whether the bank should lend $100,000 to Curry Company. Write a one- paragraph recommendation to the loan committee.
Income Statement Data: 19X5 19X4 19X3
Total Revenue 850,000 770,000 720,000
Total Expenses 640,000 570,000 540,000
Net Income 210,000 200,000 180,000
Statement of Owner’s Equity Data; 19X5 19X4 19X3
Beginning capital 450,000 390,000 330,000
Add Net Income 210,000 200,000 180,000
660,000 590,000 510,000
Less: Withdrawals 160,000 140,000 120,000
Ending capital 500,000 450,000 390,000
Balance Sheet Data: 19X5 19X4 19X3
Total assets 740,000 670,000 590,000
Total liabilities 240,000 220,000 200,000
Total Owner’s equity 500,000 450,000 390,000
Total liabilities and owner’s equity 740,000 670,000 590,000
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