Jan Fama, associate credit analyst for the Merchants National Bank of Midland, MI, was assigned the task of analyzing Jarmon's loan request.
A.) Calculate the financial ratios for 2010 corresponding to the industry norms provided:
B.) Which of the ratios reported in the industry norms do you feel should be most crucial in determining whether the bank should extend the line of credit?
C.) Use the information probided by the financal ratios and the cash flow statement to decide if you would support making the loan.