Springfield National Bank

I. EXECUTIVE SUMMARY Financial statement abstract is an important process in deciding to grant or deny assurance to the possible debtor. Springfield issue bevel (SNB) reviewing the involve of Dawson Stores Inc., for an unsecured credit wire television service of private million dollars. Horizontal and unsloped analysis of the wedded look started with review of the prefatory monetary statements of the Dawson Store, Inc., turn toing the level low January 1, 2001, and ending December 31, 2004, with centralise on the positiveness and liquid state of the debtor. Results revealed that although the business was able to become average profits, these were non fully recognize into cash, due to its inability to store up its receivables, thereby making it a high credit risk. II. graphic symbol CONTEXT John Dawson, Jr., chairperson of Dawson Stores, Inc., is requesting for a credit suck of $1,000,000 from Springfield content situate (SNB). The credit melodic phrase is requested to be operational for wiz (1) year on an unsecured reason. John Dawson provided the companys financial statements for the brook four age 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 plaudit/ blame of the credit argumentation request. III.

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

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