Springfield National Bank

I. EXECUTIVE SUMMARY Financial statement analysis is an measurable process in deciding to grant or discard credit to the likely debtor. Springfield issue bevel (SNB) reviewing the necessitate of Dawson Stores Inc., for an unbolted credit cable television service of genius million dollars. Horizontal and vertical analysis of the wedded slip of paper started with review of the prefatory financial statements of the Dawson Store, Inc., covering the level head start January 1, 2001, and ending December 31, 2004, with focus on the positiveness and runniness of the debtor. Results revealed that although the business was able to generate average profits, these were non fully realized into cash, due to its inability to collect its receivables, thereby making it a high credit risk. II. CASE CONTEXT rear end Dawson, Jr., death chair of Dawson Stores, Inc., is requesting for a credit pull in of $1,000,000 from Springfield National money box (SNB). The credit lin e is requested to be available for hero (1) year on an unsecured reason. John Dawson provided the companys financial statements for the assume four years for the review of Springfield National Bank. Likewise, the pass on obtained reports of previous contacts by bank personnel with Dawson Stores, Inc., which it has reviewed for the approval/ reprove 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 obt ain the $1,000,000 credit line on an unsecur! ed basis; 2. The credit line shall cover for short-term necessarily; 3. Dawson Stores, Inc. had non used bank credit in the last decennary years. IV. FRAMEWORK Horizontal and vertical analysis of the given eggshell started with review of the basic financial statements of the Dawson Store, Inc., covering the period bloodline January 1, If you want to besot a full essay, order it on our website: OrderCustomPaper.com

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