Question

As a bank loan officer you are about to review a local company's financial statements as part of the loan approval process. What items in the financial statements would you like to give some extra attention to?

Answer 1

While giving loan officer need to look in statements company's debt and equity.Debt to Equity ratio may be considered for this.

2.profit of the company - Turnover and profit earned is the second factor which plays great role in distribution of loan.

3.Total Assets vs. Total Liabilities-This also provide sound knowledge about company financial position.

4.Inventory vs. Sales- Efficiently handling Inventory is also a good sign of company's performance as well as repayment of loan and interest is also secure by considering these factors.