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-You Have Just Been Hired as a Loan Officer for Coastline

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-You have just been hired as a loan officer for Coastline Bank and Trust. Seaton Industries and Martin Company have both applied for $125,000 nine-month loans. It is the strict policy of the bank to have only $1,350,000 outstanding in unsecured loans at any point in time. Since the bank currently has $1,210,000 in unsecured loans outstanding it will be unable to grant loans to both companies. The bank president has given you the following selected information from the companies' loan applications. Required: Assume that all account balances on the balance sheet are representative of the entire year. Based on this limited information, which company would you recommend to the bank president as the better risk for an unsecured loan? Support your answer with any relevant analysis, including examination of the current ratio, quick ratio, receivables turnover, and inventory turnover. -You have just been hired as a loan officer for Coastline Bank and Trust. Seaton Industries and Martin Company have both applied for $125,000 nine-month loans. It is the strict policy of the bank to have only $1,350,000 outstanding in unsecured loans at any point in time. Since the bank currently has $1,210,000 in unsecured loans outstanding it will be unable to grant loans to both companies. The bank president has given you the following selected information from the companies' loan applications. Required: Assume that all account balances on the balance sheet are representative of the entire year. Based on this limited information, which company would you recommend to the bank president as the better risk for an unsecured loan? Support your answer with any relevant analysis, including examination of the current ratio, quick ratio, receivables turnover, and inventory turnover. -You have just been hired as a loan officer for Coastline Bank and Trust. Seaton Industries and Martin Company have both applied for $125,000 nine-month loans. It is the strict policy of the bank to have only $1,350,000 outstanding in unsecured loans at any point in time. Since the bank currently has $1,210,000 in unsecured loans outstanding it will be unable to grant loans to both companies. The bank president has given you the following selected information from the companies' loan applications. Required: Assume that all account balances on the balance sheet are representative of the entire year. Based on this limited information, which company would you recommend to the bank president as the better risk for an unsecured loan? Support your answer with any relevant analysis, including examination of the current ratio, quick ratio, receivables turnover, and inventory turnover. -You have just been hired as a loan officer for Coastline Bank and Trust. Seaton Industries and Martin Company have both applied for $125,000 nine-month loans. It is the strict policy of the bank to have only $1,350,000 outstanding in unsecured loans at any point in time. Since the bank currently has $1,210,000 in unsecured loans outstanding it will be unable to grant loans to both companies. The bank president has given you the following selected information from the companies' loan applications. Required: Assume that all account balances on the balance sheet are representative of the entire year. Based on this limited information, which company would you recommend to the bank president as the better risk for an unsecured loan? Support your answer with any relevant analysis, including examination of the current ratio, quick ratio, receivables turnover, and inventory turnover.
-You have just been hired as a loan officer for Coastline Bank and Trust. Seaton Industries and Martin Company have both applied for $125,000 nine-month loans. It is the strict policy of the bank to have only $1,350,000 outstanding in unsecured loans at any point in time. Since the bank currently has $1,210,000 in unsecured loans outstanding it will be unable to grant loans to both companies. The bank president has given you the following selected information from the companies' loan applications.
-You have just been hired as a loan officer for Coastline Bank and Trust. Seaton Industries and Martin Company have both applied for $125,000 nine-month loans. It is the strict policy of the bank to have only $1,350,000 outstanding in unsecured loans at any point in time. Since the bank currently has $1,210,000 in unsecured loans outstanding it will be unable to grant loans to both companies. The bank president has given you the following selected information from the companies' loan applications. Required: Assume that all account balances on the balance sheet are representative of the entire year. Based on this limited information, which company would you recommend to the bank president as the better risk for an unsecured loan? Support your answer with any relevant analysis, including examination of the current ratio, quick ratio, receivables turnover, and inventory turnover. Required: Assume that all account balances on the balance sheet are representative of the entire year. Based on this limited information, which company would you recommend to the bank president as the better risk for an unsecured loan? Support your answer with any relevant analysis, including examination of the current ratio, quick ratio, receivables turnover, and inventory turnover.

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