You are a bank loan manager and responsible for approving small business loans and loans to investors who are purchasing commercial and residential real estate for rental purposes Discussion question 1 Explain which financial reports would you request and review to evaluate the following The company's history and ability to make loan monthly payments and repay the loan The company's history and ability to earn a steady and reasonable profit Discussion question 2 Working capital and the current ratio measure liquidity to pay short term debts The business loans you are approving are long term debts Do you think you consider a company's working capital and current ratio Why or why not

Question: You are a bank loan manager and responsible for approving small business loans and loans to investors who are purchasing commercial and residential real estate

You are a bank loan manager and responsible for approving small business loans and loans to investors who are purchasing commercial and residential real estate for rental purposes.

Discussion question 1: Explain which financial reports would you request and review to evaluate the following:

The company's history and ability to make loan monthly payments and repay the loan
The company's history and ability to earn a steady and reasonable profit

Discussion question 2: Working capital and the current ratio measure liquidity to pay short-term debts. The business loans you are approving are long-term debts. Do you think you consider a company's working capital and current ratio? Why or why not?

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