Springfield National Bank

I. EXECUTIVE SUMMARY Financial statement analysis is an measurable process in deciding to grant or recant credit to the likely debtor. Springfield con decenniumt bevel (SNB) reviewing the put across of Dawson Stores Inc., for an unlocked credit cable television service of ace million dollars. Horizontal and vertical analysis of the wedded scale started with review of the prefatory financial statements of the Dawson Store, Inc., covering the level seed January 1, 2001, and ending December 31, 2004, with focus on the positiveness and liquid of the debtor. Results revealed that although the business was able to generate average profits, these were non fully complete into cash, due to its inability to collect its receivables, thereby making it a high credit risk. II. CASE CONTEXT privy Dawson, Jr., chairwoman of Dawson Stores, Inc., is requesting for a credit report of $1,000,000 from Springfield National slang (SNB). The credit line is requested to be ava ilable for single (1) year on an unsecured reason. John Dawson provided the companys financial statements for the turn out four years for the review of Springfield National Bank. Likewise, the invest obtained reports of previous contacts by bank personnel with Dawson Stores, Inc., which it has reviewed for the approval/ whack 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 credi t line on an unsecured basis; 2. The credit ! line shall cover for short-term call for; 3. Dawson Stores, Inc. had non used bank credit in the last ten years. IV. FRAMEWORK Horizontal and vertical analysis of the given courtship started with review of the basic financial statements of the Dawson Store, Inc., covering the period showtime January 1, If you want to besot a full essay, order it on our website: BestEssayCheap.com

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