Fin3030 Credit Analysis Case Study 1

FIN3010 Banking & Credit

Semester 2/2013-14

Credit Analysis Case Study #1

ABC Company Balance Sheet As of December 31, XXXX ASSETS Current Assets Cash in Bank Accounts Receivable Inventory Total Current Assets Fixed Assets Furniture & Fixtures Trucks & Autos Equipment – Other Leasehold Improvements Depreciation Allowance Total Fixed Assets Prepaid Assets Prepaid Corporation Tax State Tax Deposit Prepaid Franchise Tax Organization Expenses Deposit – Miscellaneous Total Prepaid Assets Intangible Assets Goodwill Total Intangible Assets TOTAL ASSETS LIABILITIES & NET WORTH Current Liabilities Notes Payable – Bank Accounts Payable L/C Payable (Advances) Payroll Taxes Payable Total Current Liabilities Long Term Liabilities Total Liabilities Net Worth Issued Common Stock Retained Earnings Profit for the Period Total Net Worth TOTAL LIABILITIES & NET WORTH ABC Company Income Statement For the Year Ended December 31, XXXX SALES Sales Returns and Allowances Total Net Sales COST OF SALES Purchases Duty, IRS Tax & Services Total Cost of Sales Gross Profit OPERATING EXPENSES Advertising & Sales Promotion Bad Debts Commission Expenses Depreciation Freight, Storage & Handling Insurance Interest Legal & Accounting Medical Miscellaneous Expense Office Supplies Rent Taxes – Spirits Taxes – Payroll Taxes – Corp. & Others Telephone & Telegraph Travel Expense Truck & Auto Expense Utilities Wages Total Operating Expenses Net Profit EXTRAORDINARY ITEMS Miscellaneous Income Gain/(Loss) from Disposal of Assets Profit for the Period $953,257.26 0.00 953,257.26 534,527.06 151,245.31 685,772.37 $267,484.89 2,856.74 0.00 0.00 16,907.22 12,151.18 4,649.86 9,358.01 75.00 372.51 1,701.38 1,662.59 54,467.50 27,208.64 5,438.40 8,186.77 3,732.38 6,986.49 11,954.63 414.70 75,036.10 $243,160.10 $24,324.79 3,970.38 100.00 $28,395.17

$1.00 114,003.82 256,302.16 $370,306.98 1,367.82 99,882.89 15,553.37 3,078.65 (41,550.35) $78,332.38 43.00 2,000.00 752.00 1,900.00 1,100.00 $5,795.00 1.00 1.00...