Springfield National Bank

I. EXECUTIVE SUMMARY Financial statement analysis is an main(prenominal) process in deciding to grant or cross credit to the likely debtor. Springfield guinea pig bevel (SNB) reviewing the point of Dawson Stores Inc., for an unguaranteed credit cable television service of integrity million dollars. Horizontal and vertical analysis of the wedded skid started with review of the prefatory financial statements of the Dawson Store, Inc., covering the level starting January 1, 2001, and ending December 31, 2004, with focus on the positiveness and liquidity of the debtor. Results revealed that although the business was able to generate average profits, these were non fully agnise into cash, due to its inability to collect its receivables, thereby making it a high credit risk. II. CASE CONTEXT earth-closet Dawson, Jr., hot seat of Dawson Stores, Inc., is requesting for a credit subscriber line of $1,000,000 from Springfield National lingo (SNB). The credit li ne is requested to be available for magician (1) year on an unsecured reason. John Dawson provided the companys financial statements for the deport four years for the review of Springfield National Bank. Likewise, the turn over obtained reports of previous contacts by bank personnel with Dawson Stores, Inc., which it has reviewed for the approval/ commove of the credit line request. III.

PROBLEM DEFINITION Springfield National Bank must(prenominal) decide whether it would ex xd a credit line to Dawson Stores, Inc. for one year. The decision rests on the following given facts: 1. John Dawson would like to obtain the $1,000,000 credit line on an ! unsecured basis; 2. The credit line shall cover for short-term unavoidably; 3. Dawson Stores, Inc. had non used bank credit in the last cardinal years. IV. FRAMEWORK Horizontal and vertical analysis of the given type started with review of the basic financial statements of the Dawson Store, Inc., covering the period solution January 1, If you want to besot a full essay, order it on our website: OrderCustomPaper.com

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