Review the two scenarios below. Based on this week's readings, consider how you would respond to the question posed after each.
Scenario 1: As a loan officer for First Loans Bank, you have been approached by Custom Window Blinds (CWB). CWB needs to borrow money to purchase new state-of-the-art window-blind manufacturing equipment. As the loan officer, you need to view the company's financial statements. What information/ratios should you, as the loan officer, use? Why?
Scenario 2: You are president of Custom Window Blinds, and business has been very good. You are thinking of expanding to a new location. In order to decide if this is something your company should do, you ask the controller of your company, Joe Beancounter, to do an analysis based on your current financial statements. What information/ratios should Joe use?
Briefly describe how the information in the two scenarios is interrelated. With these thoughts in mind: Post a brief statement that expresses your thoughts on how the two given scenarios are interrelated.