Sable Company Is Seeking a Short-Term Loan from Its Local

question 123

Essay

Sable Company is seeking a short-term loan from its local bank.The banker needs assurance that the company will be able to repay the loan.Describe three financial ratios the banker should consider including in the loan approval process.What information does each of your selected ratios provide?

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Definitions:

Solid State

A semiconductor circuit or device.

Solenoid

An electromagnetic device consisting of a coil and armature designed to perform mechanical work when energized. Used in just about every electrical circuit on modern vehicles, whether it be in the starter circuit, transmission, or door locks.

Thermistor

A temperature sensing device used in various electronic circuits in a truck chassis. Consists of a variable resistor, the variance of which correlates with temperature. When supplied with a reference voltage (V-Ref), some of the supply voltage is returned as a signal from which temperature can be calculated. Most truck electrical circuits use negative temperature coefficient (NTC) thermistors in which resistance drops as temperature increases, meaning that the signal voltage increases with temperature rise.

Temperature

A physical quantity expressing the subjective perceptions of hot and cold, measured by thermometers which can translate various physical phenomena into numerical values.