"You Decide" Essay
You Are the Owner and Operator of a Growing

question 3

Essay

"You Decide" Essay
You are the owner and operator of a growing small business.You would like to expand your product offerings but need $25,000 in short-term financing in order to do so.You have an appointment to see your banker tomorrow.The banker has asked you to bring certain financial information with you to the meeting.That information is provided below:
$\begin{array}{|l|l|l|l|l|}\hline \text { at December } 31 \text {, }\\\hline 2013&2012\\\hline \text { Balance Sheet Information } & & & & \\\hline \text { Total current assets } & & \$ 66,000 & & \$ 75,000 \\\hline \text { Accounts payable } & & 2,610 && 1,500 \\\hline \text { Short-term notes payable } & & 12,010 & & 8,885 \\\hline \text { Income taxes payable } & 380 & & 560 & \\\hline \text { Income Statement Information } & & & & \\\hline \text { Sales } & & \$ 842,000 & & \$ 765,000 \\\hline \text { Net income } & & 10,275 & & 4,670\\\hline\end{array}$ Use your financial information to make a case for the loan.

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Definitions:

Standard Error

The standard deviation of the sampling distribution of a statistic, typically the mean, reflecting the variation of the sampling statistic over different samples.

Mean

The arithmetic average of a set of numbers, obtained by dividing the sum of these numbers by their quantity.

Z-statistic

A statistic used to determine the difference between an observed statistic and its hypothesized population parameter, measured in units of the standard deviation.

Two-tailed Test

A statistical test hypothesis that allows for the possibility of an effect in two directions, either greater than or less than.