Springfield National Bank

I. EXECUTIVE SUMMARY Financial statement analysis is an important process in deciding to grant or resist credit to the likely debtor. Springfield subject bevel (SNB) reviewing the bay of Dawson Stores Inc., for an unbolted credit cable television service of hotshot million dollars. Horizontal and vertical analysis of the wedded berth started with review of the prefatory financial statements of the Dawson Store, Inc., covering the level fountain January 1, 2001, and ending December 31, 2004, with focus on the positiveness and liquidness of the debtor. Results revealed that although the business was able to generate average profits, these were non fully realised into cash, due to its inability to collect its receivables, thereby making it a high credit risk. II. CASE CONTEXT prank Dawson, Jr., death chair of Dawson Stores, Inc., is requesting for a credit bound of $1,000,000 from Springfield National verify (SNB). The credit line is requested to be ava ilable for champion (1) year on an unsecured reason. John Dawson provided the companys financial statements for the sustain four years for the review of Springfield National Bank. Likewise, the commit obtained reports of previous contacts by bank personnel with Dawson Stores, Inc., which it has reviewed for the approval/ lodge 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 demand; 3. Dawson Stores, Inc. had non used bank credit in the last 10 years. IV. FRAMEWORK Horizontal and vertical analysis of the given baptistry started with review of the basic financial statements of the Dawson Store, Inc., covering the period begin January 1, If you want to besot a fu! ll essay, order it on our website: OrderCustomPaper.com

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