You have just been employed at a Junior Analyst at a bank and as your first assignment you have been asked to analyze the financial statements of a small snow removal business which has applied for a $100,000 loan to purchase additional equipment toexpand its operations.a. Should the bank lend the company the funds? Support your recommendation with calculations Income StatementSalesCost of Goods SoldGross profitSalaries & WagesDepreciationInsuranceAdvertising ExpensesInterest ExpenseIncome before taxesIncome taxNet Profit2021500,000 550,000300,000375,500200,000174,50077,000100,0002,0003,0006,0008,0004,0002,5718,1439,500102,85751,42930,85715,42972,00036,0002022 Balance SheetCurrent AssetsCashInventoryAccounts ReceivablesPrepaid InsuranceTotal Current AssetsLong Lived AssetsProperty Plant & EquipmentTotal AssetsLiabilities & Owners' EquityCurrent LiabilitiesAccounts PayableSalaries PayableInterest PayableUnearned RevenueShort term notesTotal Current LiabilitiesLong Term LiabilitiesNotes PayableTotal LiabilitiesOwner's EquityTotal Liab & Owners Equity202110,000150,00039,650350200,00045,00010,00025,00020,00080,000180,0002022360,000 400,000560,000 680,00030,000190,00060,000O280,000212,000392,00055,00015,00035,00040,000155,000300,000176,000476,000168,000204,000560,000 680,000

The decisions of making the loan to be issued to the company have to be required to analyse the…

You have just been employed at a Junior Analyst at a bank and as your first assignment you have been asked to analyze the financial statements of a small snow removal business which has applied for a $100,000 loan to purchase additional equipment to expand its operations. a. Should the bank lend the company the funds? Support your recommendation with calculations

You have just been employed at a Junior Analyst at a bank and as your first assignment you have been asked to analyze the financial statements of a small snow removal business which has applied for a $100,000 loan to purchase additional equipment to expand its operations. a. Should the bank lend the company the funds? Support your recommendation with calculations

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 3MC: Identify the correct components of the income statement. A. revenues, losses, expenses, and gains B....

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