Write a paper to analysis the capstone corporation financial statements prepared and explain the following in your
Question:
Write a paper to analysis the capstone corporation financial statements prepared and explain the following in your analysis:
• Using the information from part i and part ii, compute at least 5 standard ratios for capstone corporation.
• Based on the computed ratios, discuss the affect of the corporation obtaining a $500,000 loan to expand the business. the loan will paid over a 10-year period. re-compute the corporation's debt ratio, assuming the loan is made. use the financial statements plus the ratio values to decide whether the loan should be granted at an interest rate of 8%, 10%, or 12%.
• Assume that capstone corporation is a public company. discuss the type of internal controls that should be in place. explain how these controls will provide confidence to investors and lenders and reduce fraud.
Expert Answer:
Current Ratio The current ratio is also called the working capital ratio as working capital is the difference between current assets and current liabilities This ratio measures the ability of a compan... View the full answer
