Do Numbers Lie? The Other Side of Financial Statement Analysis
If you were to enter the banking industry you may find yourself approving or not approving loans. The following is a good example of a common event you may encounter.
Company X is looking for a $100,000 to purchase new equipment. The finance manager for Company X recently presented financial reports. Upon further analysis of the statements you, the banker, noted some window dressing of the financial statement. In this case it seems Company X will delay payments to vendors in order to make their cash position look higher.
- Do you see this practice a matter of ethical and or legal concern?
- Do you think most all companyâ€™s â€œwindow dressâ€ their data?
Please explain your decision to approve or disapprove Company xâ€™s loan.
Need by 25 Sep 2015 by 1200 EST