Professional Documents
Culture Documents
Instruction: Respond to the scenario below by using the P-M-I Chart. Write your answers in the
• In the Interesting box, write some facts about the specific financial statement.
Scenario: Shark Loans received a request for a construction loan from Wendy Services Inc. This
construction loan will be used to build their fifth branch in Pasay. The company submitted its
balance sheet and income statement. Help Shark Loans choose which financial statement they
would use as a basis on whether they will accept or reject Wendy Services Inc.'s request. Refer
PLUS MINUS
- Cash in 200B is equal to or greater - While it is not a good thing for 200A,
- The total assets of 200B exceed or and accounts receivable are less
200A's.
INTERESTING
- It's remarkable to observe that 200B's capital is 332,640.00, whereas 200A's capital is
- Also know that the office equipment in 200A is less expensive than that in 200B.
PLUS MINUS
- In terms of revenue, 200B is greater - 200A has lower revenue than 200B.
both totals.
200A.
INTERESTING
- It is encouraging to find that income for 200B is higher than revenue for 200A, but
MY DECISION
The company shall determine the reasons for its acceptance or rejection of Wendy Services
Inc.'s request by reference to its statement of financial situation. Due to the Statement of
Financial Position, which is considered by businesses like those that offer loans and provides
good or better information about the company's assets and liabilities position as well as a
look or perspective on Wendy Services' integrality position or liquidity, the income statement