Piroutte Inc. has come to the bank you work for looking for a $250,000 long-term loan. The loan committee has asked you to review the following data submitted with Piroutte's loan application: Instructions
a) Calculate the solvency ratios: debt/equity, interest coverage, and cash flows to total liabilities for all three years.
b) Write a brief report giving your recommendation on granting the loan. Provide support for your position.

Question

Piroutte Inc. has come to the bank you work for looking for a $250,000 long-term loan. The loan committee has asked you to review the following data submitted with Piroutte's loan application:  Instructions 
a) Calculate the solvency ratios: debt/equity, interest coverage, and cash flows to total liabilities for all three years.
b) Write a brief report giving your recommendation on granting the loan. Provide support for your position.

Quizplus · Accepted Answer

The Answer of Piroutte Inc. has come to the bank you work for looking for a $250,000 long-term loan. The loan committee has asked you to review the following data submitted with Piroutte's loan application:  Instructions 
a) Calculate the solvency ratios: debt/equity, interest coverage, and cash flows to total liabilities for all three years.
b) Write a brief report giving your recommendation on granting the loan. Provide support for your position.