Write a 1-2 page executive summary, along with an appendix of supporting information, in which you analyze
an organization’s financial performance as well as their level of risk for lending and make and present a
recommendation to help leadership make a loan decision.
Your Role
You are a loan manager for a lending organization, and your responsibilities include reviewing loan requests
and providing recommendations in regard to whether the loan requests should be funded.
Requirements:
Use a firm or scenario of your choosing.

Before choosing a company, read the assessment thoroughly to ensure:
The company fits the assessment requirements.
You have access to the financial statements and related performance documents needed to assess risk and
make a loan recommendation. You will need information for this year and last year.
You can distribute the financial statements and related performance documents without disclosing confidential
company information.
Loan Recommendation
To arrive at your recommendation, analyze the financial performance of the requesting company and present it
to your organization’s upper-management team. The management team will take your recommendation into
consideration as they finalize loan requests.
Analyze the company’s performance and performance trends. Include the following in your analysis:
Analyze the trend for accounts receivable collections.
Identify the trend.
Explain the relevance of the trend.
Determine if the trend is improving or getting worse.
Compare the company’s average inventory turnover to the industry average inventory turnover rate. Note that
the average industry turnover rate for Ace Company is 10 times per year.
Consider whether the company’s average inventory turnover is higher or lower than the industry average.
Explain whether a higher or lower average is better.
Determine whether the trend is improving or getting worse