1Running head: RATIO ANALYSISRatio AnalysisNameInstitutional Affiliation2RATIO ANALYSISRatio AnalysisWhy Financial Statement Is AuditedA financial audit is a process whereby an auditor - an independent person from outsidethe company - examines the financial statement of that particular company. Therefore, Jasoncorporation financial statement should be audited to ensure that the statements given are credible.Additionally, since Jason, was acting pushy getting accountability of the statements to ensurethat they are up to date with the balances of the finances in Jason Corporation. The auditingprocess will also be helpful in determining the financial position of the corporation, and this willassist in determining whether to give out the loan requested, reduce or decline the loan requestaltogether.Implications of the Ratios ProvidedThe ration in 2017 of Jason Corporation is at 3.1 and 2.1 for 2016 which indicates thatthe eight-year loan Mr. Jason is requesting for can be paid within the agreed period.Additionally, looking at the asset turn over 2017 was much better than 2016, which shows thatthe corporation is growing. Asset turnover simply shows how well a company can generaterevenue and for our case, Jason Corporation shows a positive productivity growth in regards tothe turnover provided (Gibson 2012).Trends in the performance of P. Jason CorporationJason did not provide full information regarding the financial statements of hiscorporation; thus ...
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