Springfield National Bank

I. EXECUTIVE SUMMARY Financial statement analysis is an fundamental process in deciding to grant or traverse credit to the likely debtor. Springfield national bevel (SNB) reviewing the communicate of Dawson Stores Inc., for an unguaranteed credit cable television service of mavin million dollars. Horizontal and vertical analysis of the wedded compositors casing started with review of the prefatory financial statements of the Dawson Store, Inc., covering the level runner January 1, 2001, and ending December 31, 2004, with focus on the positiveness and fluidity 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 rump Dawson, Jr., professorship of Dawson Stores, Inc., is requesting for a credit describe of $1,000,000 from Springfield National margin (SNB). The credit li ne is requested to be available for brainiac (1) year on an unsecured reason. John Dawson provided the companys financial statements for the offer four years for the review of Springfield National Bank. Likewise, the rely obtained reports of previous contacts by bank personnel with Dawson Stores, Inc., which it has reviewed for the approval/ file 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 $1,0 00,000 credit line on an unsecured basis; 2.! The credit line shall cover for short-term inescapably; 3. Dawson Stores, Inc. had non used bank credit in the last go years. IV. FRAMEWORK Horizontal and vertical analysis of the given case started with review of the basic financial statements of the Dawson Store, Inc., covering the period start-off January 1, If you want to besot a full essay, order it on our website: OrderCustomPaper.com

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