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    Credit Analysis Test 8.22

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    Abhipray Dhabu
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    Credit Analysis Test 8.22

    Uploaded by

    Abhipray Dhabu
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    3 views3 pages

    Credit Analysis Test 8.22

    Uploaded by

    Abhipray Dhabu
    NA

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    ABC Company, Inc.

    Balance Sheet ($000's)


    Date of F/S: 12/31/2019 12/31/2020 12/31/2021
    Type of F/S: Tax Return Tax Return Tax Return
    Months: 12 12 12
    CURRENT ASSETS
    Cash 185 2.1% 0.0% 310 3.4%
    Net Accounts Receivable‐Trade 2,225 24.7% 1,350 16.2% 1,625 17.7%
    Inventory 495 5.5% 540 6.5% 650 7.1%
    Total Current Assets 2,905 32.3% 1,890 22.7% 2,585 28.1%

    FIXED ASSETS
    Land 1,000 11.1% 1,000 12.0% 1,000 10.9%
    Building 5,000 55.5% 5,150 61.8% 5,500 59.8%
    FF&E 250 2.8% 250 3.0% 300 3.3%
    Transportation Equipment 50 0.6% 50 0.6% 50 0.5%
    Total Fixed Assets 6,300 70.0% 6,450 77.4% 6,850 74.5%

    Depreciation 200 2.2% 210 2.5% 435 4.7%


    NET FIXED ASSETS 6,100 67.7% 6,240 74.9% 6,415 69.7%

    OTHER ASSETS
    Due from Shareholders 0.0% 200 2.4% 200 2.2%
    Total Other Rec. ‐ 0.0% 200 2.4% 200 2.2%

    TOTAL OTHER ASSETS ‐ 0.0% 200 2.4% 200 2.2%

    TOTAL ASSETS 9,005 100.0% 8,330 100.0% 9,200 100.0%

    CURRENT LIABILITIES
    Overdrafts 0.0% 15 0.2% 0.0%
    Line of Credit 1,970 21.9% 1,380 16.6% 1,625 17.7%
    CPLTD‐Bank/Other 200 2.2% 200 2.4% 200 2.2%
    Accounts Payable‐Trade 250 2.8% 270 3.2% 325 3.5%
    Total Current Liabilities 2,420 26.9% 1,865 22.4% 2,150 23.4%

    LONG TERM LIABILITIES


    LT Debt‐Bank/Other 4,800 53.3% 5,000 60.0% 4,800 52.2%
    Total Long Term Liabilities 4,800 53.3% 5,000 60.0% 4,800 52.2%

    TOTAL LIABILITIES 7,220 80.2% 6,865 82.4% 6,950 75.5%

    EQUITY
    Common Stock 100 1.1% 100 1.2% 100 1.1%
    Paid In Capital 1,500 16.7% 1,500 18.0% 1,500 16.3%
    Retained Earnings 185 2.1% (135) ‐1.6% 650 7.1%
    TOTAL EQUITY 1,785 19.8% 1,465 17.6% 2,250 24.5%

    TOTAL LIABILITIES & EQUITY 9,005 100.0% 8,330 100.0% 9,200 100.0%

    NET WORKING CAPITAL 485 25 435


    TANGIBLE NET WORTH 1,785 19.8% 1,265 15.2% 2,050 22.3%
    ABC Company, Inc.
    Income Statement ($000's)
    Date of F/S: 12/31/2019 12/31/2020 12/31/2021
    Type of F/S: Tax Return Tax Return Tax Return
    Months: 12 12 12
    REVENUES
    Revenue 10,000 100.0% 11,000 100.0% 13,200 100.0%
    Total Revenue 10,000 100.0% 11,000 100.0% 13,200 100.0%

    Cost of Sales 6,000 60.0% 4,400 40.0% 7,920 60.0%


    Gross Profit 4,000 40.0% 6,600 60.0% 5,280 40.0%

    OPERATING EXPENSES
    Owner's Compensation 200 2.0% ‐ 0.0% 200 1.5%
    Salaries and Wages 1,500 15.0% 1,850 16.8% 1,980 15.0%
    Bad Debts ‐ 0.0% 1,000 9.1% ‐ 0.0%
    Property Taxes 200 2.0% 200 1.8% 200 1.5%
    Depreciation 200 2.0% 210 1.9% 225 1.7%
    Other Operating Expense 600 6.0% 2,860 26.0% 790 6.0%
    Total Operating Expenses 2,700 27.0% 6,120 55.6% 3,395 25.7%

    OPERATING INCOME 1,300 13.0% 480 4.4% 1,885 14.3%

    (Interest Expense) (365) ‐3.7% (400) ‐3.6% (350) ‐2.7%


    Gain (Loss) on Sale of Assets 0.0% 100 0.9% 0.0%

    NET INCOME BEFORE TAXES 935 9.4% 180 1.6% 1,535 11.6%

    NET INCOME 935 9.4% 180 1.6% 1,535 11.6%

    DISTRIBUTIONS 750 500 750


    ABC Company, Inc.
    Detailed Ratios
    Date of F/S: 12/31/2019 12/31/2020 12/31/2021
    Type of F/S: Tax Return Tax Return Tax Return
    Months: 12 12 12
    LIQUIDITY
    Working Capital 485 25 435
    Quick Ratio 1.00 0.72 0.90
    Current Ratio 1.20 1.01 1.20

    LEVERAGE
    Debt/Worth 4.04 4.69 3.09
    Debt/Tangible Worth 4.04 5.43 3.39
    Tangible Net Worth 1,785 1,265 2,050

    PROFITABILITY
    Return on Assets % 10.38 2.16 16.68
    Return on Equity % 52.38 12.29 68.22
    EBITDA Margin % 15.00 7.18 15.98
    EBITDAR Margin % 15.00 7.18 15.98

    ACTIVITY
    Revenue Growth % #DIV/0! 10.00 20.00
    Accounts Receivable Days 81.21 44.80 44.93
    Inventory Days 30.11 44.80 29.96
    Accounts Payable Days 15.21 22.40 14.98

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