QUESTION 3 How well did PSL perform in its first period?
What does the accounting information say about Jesses 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 PSLs
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 (dont 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
