2. How well is Jones Electrical performing? Use the income statement and balance sheet and calculate the financial ratios.

  1. How well is Jones Electrical performing? Use the income statement and balance sheet and calculate the financial ratios in chapter 3. List these ratios in a table in APA format.
  2. Explain why a company with a $30,000 profit needs a bank loan.
  3. Is Nelson Jones’ estimate of a $350,000 line of credit sufficient? Explain your answer.
  4. When will Jones be able to pay his line of credit?
  5. What can Jones do to reduce line of credit?
  6. Write a one paragraph conclusion giving your final recommendations for Jones.