Springfield National Bank

I. EXECUTIVE SUMMARY Financial statement analysis is an important process in deciding to grant or deny trust to the promising debtor. Springfield national bevel (SNB) reviewing the take of Dawson Stores Inc., for an unsecured credit seam television service of hit million dollars. Horizontal and erect analysis of the wedded sequel started with review of the prefatory pecuniary statements of the Dawson Store, Inc., care foring the level radical January 1, 2001, and ending December 31, 2004, with centralize on the positiveness and fluidity of the debtor. Results revealed that although the business was able to draw average profits, these were non fully cognize into cash, due to its inability to receive its receivables, thereby making it a high credit risk. II. side CONTEXT John Dawson, Jr., chairperson of Dawson Stores, Inc., is requesting for a credit cablegram of $1,000,000 from Springfield bailiwick confide (SNB). The credit guide is requested to be obtainable for wiz (1) year on an unsecured reason. John Dawson provided the companys pecuniary statements for the brook four long time for the review of Springfield National Bank. Likewise, the intrust obtained reports of previous contacts by bank personnel with Dawson Stores, Inc., which it has reviewed for the acclaim/ blame of the credit telephone line request. III.

PROBLEM DEFINITION Springfield National Bank must(prenominal) decide whether it would ex xd a credit line to Dawson Stores, Inc. for peerless year. The decision rests on the undermentioned given facts: 1. John Dawson would kindred to obtain the $1,000,000 credit line on an unsecured introduction; 2. The credit line shall cover for short-term needs; 3. Dawson Stores, Inc. had non apply bank credit in the last ten years. IV. FRAMEWORK Horizontal and plumb analysis of the given theatrical role started with review of the basic financial statements of the Dawson Store, Inc., covering the period lineage January 1, If you want to besot a full essay, order it on our website: Ordercustompaper.com

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