• Assume, as the loan officer of a commercial bank, that one of your customers has asked for a commercial letter of credit to enable his firm to import a supply of well-known French wines.
This customer has a long record of commercial success yet has large outstanding debts to other creditors. In what way might you accommodate the customer and at the same time protect your bank?
• Select one (1) U.S. publicly traded company and review its most recent Annual Report.
Use the Income Statement and Balance Sheet to determine the changes in:
assets, liabilities, and equity
total revenue and net income
Briefly, describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor/stockholder's view.
1. Based on one of thestock you pickedidentify its working capital in years, 2014, 2015, 2016.
2. Based on that information, what inference can you draw from its working capital?
• Using the stock, you picked. Use various online financial websites or by calculating by hand, identify the following financial ratios for your stock for the year ending 2014, 2015, 2016 financial statements. After finding the information, what inference can you draw from the data?
For example, if the Return on Assets is flat, unchanged for three straight years, what does that mean?
• Current Ratio
• Return on Assets
• Return on Equity
• Debt/Equity Ratio