Financial management

          Speaking as a loan officer, you may use the case of these two borrowers to illustrate the points you make in this discussion. Briefly discuss why firms issue financial statements, considering any one category of user interested in these statements. Using any one type of financial ratio as an illustration, explain how financial statements offer a picture of a firm’s ability to serve as a good manager of invested funds. Discuss any one financial ratio that a financial institution might use to evaluate the the suitability of an applicant for a personal loan (as an example of one ratio, search for the term "debt-to-income ratio"). Discuss the similarities between a corporate income statement and balance sheet and the documentation required of a mortgage loan applicant.