This problem below is concerning financial statement analysis and decision making from various perspectives. Assume that you have just been hired as a loan officer at Slippery Rock State Bank. Your supervisor has given you a file containing a request from Lydex Company, a manufacturer of safety helmets, for a $3,000,000 five-year loan. Financial Statement data on the company for the last 2 years follows.
- calculation of ratios
- Make a recommendation to your supervisor as to whatever the loan should be approved. And explain the reasons of your recommendation.
Step by step calculation shown.