BM2211

Names Althea Mea B. Novida Section BSTM 3-1AA Date Nov. 13, 2023

P-M-I CHART
Instruction: Respond to the scenario below by using the P-M-I Chart. Write your answers in the spaces
provided. (20 points)
 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 to Page 2. Justify your
decision.

Response 1: Statement of Financial Position Response 2: Income Statement

Plus Minus Plus Minus

 The amount of items  Given that the cost of

 From 166,320 to
sold remained the goods supplied
332,640, the  Wendy Services Inc.
same in both years, remained same, all
company's cash makes more money
however the amount expenses need to be
balance has than it need to cover
of accounts due set.
increased. its costs.
changed.
 The company's  If a company's
 From 42% to 61% was
balance sheet is  Furthermore, the the increase in net
expenses are fully
above 50% cash, quantity of accounts fixed, then its business
profit margin.
which qualifies it as a receivable and their risk is elevated.
cash rick. cash amount are
almost equal.

Interesting Interesting

The amount of goods sold remained constant between the Revenue increased even while the cost of items sold
two years, but even so, profits increased, with revenue remained same.
rising from 600.000 to 300,000 from 250,000 to $100,000
and cast rising from 1663203640.

My Decision

Examine a financial institution's reputation, fees, interest rates, and terms before signing a loan agreement to ensure its
dependability. Research should be done on Shark Lans by looking up references, customer reviews, and prior
performance with building am Seek advice from legal and financial experts to ensure eligibility and clear conditions.
BM2211