Overview
QUESTION 3 – How well did PSL perform in its first period?
“What does the accounting information say about Jesse’s management abilities? If he did not start up PSL, he could have found a summer job and earned $3,000.” This is where you include all the details that will support your analysis on PSL’s performance. Prepare a short discussion of the advantages and disadvantages of Jesse having started his own business instead of working at the grocery store. Include the supporting ideas, facts, and calculations that back up your discussion. If you useinformation from a source such as your textbook or the internet, make sure to note the
source that you used. Include strong points and evidence to persuade the reader to follow your recommended actions. Specifically you should show the following elements: The decision criteria Any assumptions you had to make to support your analysis Using distinct headings Advantages and Disadvantages. Make sure that your advantages and disadvantages relate to the facts of the case and are reasonable in the context of the company. You can add information that you find on the internet (don’t forget to provide references) for bonus marks. Qualitative and quantitative (data) analysis. Place any numerical analysis in Appendix 4 and refer to those numbers in your discussion above. QUESTION 4 – What information will the bank require for a loan application to produce a new video? “PSL is applying for a bank loan in the near future to expand operations and develop a new video. How can the accounting information be used by the bank to decide whether credit should be provided to PSL? The bank has said that it will only provide a loan if the business has twice as much equity than debt