20xz $918 $113 112 $_1 $919 ($631) $ 72 _67 $ 5 $ 31 46 ($ 15) ($641) ($228) $ 12 11 $_1 ($227) $ 5 ($ 0) $ 5 ($ 17) $ 7 6 $ 1 Dry Supply UCA Cash Flow Worksheet Dry Supply UCA Cash Flow Worksheet for 20x 15 In Soom) 20xy net sales $937 + 20xx accounts receivable $109 - 20xy accounts receivable 113 + Accounts receivable (increase) decrease {$_4) $933 =Cash from sales 20xy cost of goods sold (net of depreciation) (5667) +20xx inventory $ 73 - 20xy inventory 72 $ 1 + Inventory (increase) decrease 20xy accounts payable $ 46 20xx accounts payable 42 + Accounts payable increase (decrease) $ 4 = Cash production costs ($662) ($230) 20xy selling, gen. & admin exp. (net of deprec.) +20xy accrued expenses $ 11 20xx accrued expenses 10 + Accrued expenses increase (decrease) $ 1 =Cash operating expenses ($229) 20xy other income $ 5 20xy other expenses ($ 0) = Total miscellaneous $ 5 20xz income tax expense ($ 12) +20xy income taxes payable $ 6 20xx income taxes payable 5 + Income taxes payable increase (decrease) $ 1 = Cash paid for taxes ($ 11) NET CASH AFTER OPERATIONS $ 36 20xy interest expense ($ 7) 20xy dividends or distributions 0 = Financing costs ($ 7) = Net cash income $ 29 - 20xx CMLTD CASH AFTER DEBT AMORTIZATION $ 29 20xy depreciation expense ($ 12) + 20xx net fixed assets $ 45 20xy net fixed assets (49) + Other current assets (increase) decrease ($ 4) = Capital expenditures ($ 16) + 20xx investments (CSVLI) 13 20xy investments (CSVLI) 14 = Total long-term investments ($ 172 FINANCING SURPLUS (REQUIREMENT) $ 12 - 20xx notes payable bank short-term ($ 81) + 2Oxy notes payable bank short-term 68 + Short-term debt increase (decrease) ($ 13) + 20xy CMLTD $ 0 + 20xy long-term debt 58 - 20xx long-term debt 48) + Incremental long-term debt $ 10 - 20xx stockholders equity (excl. ret earnings) ($ 2) + 20xy stockholders equity (excl. ret. earnings) 2 + stockholders equity increase (decrease) $ 0 TOTAL EXTERNAL FINANCING ($ 3) CASH AFTER EXTERNAL FINANCING $ 9 ($ 16) $ 40 ($ 11) 0 ($ 11) $ 29 (80) $ 29 ($0) ($ 13) $ 49 (53) (S4) ($ 17) 14 (16) ($ 19) $ 10 ($ 68) 59 ($ 9) $ 0 67 (58) $ 9 ($ 2) 2 $ 0 $ 0 $ 10 Proposed loan request Dry Supply owner Kaitlyn Nieson has requested approximately $60,000 to purchase three new delivery vans in the coming year. Instructions Dry Supply's income and balance sheet spreads, plus the company's UCA cash flow model are provided in Appendix A. Answer the following questions using Dry Supply's financial information and what you have studied about loan structuring. 1. Is this loan request consistent with the profile of a typical wholesaler? 2. Based on the purpose of the loan and the use of funds, what type of borrowing arrangement(s) is (are) most appropriate? 3. Using the financial data, what are feasible repayment terms for Dry Supply for the appropriate borrowing arrangement you identified? 20xz $918 $113 112 $_1 $919 ($631) $ 72 _67 $ 5 $ 31 46 ($ 15) ($641) ($228) $ 12 11 $_1 ($227) $ 5 ($ 0) $ 5 ($ 17) $ 7 6 $ 1 Dry Supply UCA Cash Flow Worksheet Dry Supply UCA Cash Flow Worksheet for 20x 15 In Soom) 20xy net sales $937 + 20xx accounts receivable $109 - 20xy accounts receivable 113 + Accounts receivable (increase) decrease {$_4) $933 =Cash from sales 20xy cost of goods sold (net of depreciation) (5667) +20xx inventory $ 73 - 20xy inventory 72 $ 1 + Inventory (increase) decrease 20xy accounts payable $ 46 20xx accounts payable 42 + Accounts payable increase (decrease) $ 4 = Cash production costs ($662) ($230) 20xy selling, gen. & admin exp. (net of deprec.) +20xy accrued expenses $ 11 20xx accrued expenses 10 + Accrued expenses increase (decrease) $ 1 =Cash operating expenses ($229) 20xy other income $ 5 20xy other expenses ($ 0) = Total miscellaneous $ 5 20xz income tax expense ($ 12) +20xy income taxes payable $ 6 20xx income taxes payable 5 + Income taxes payable increase (decrease) $ 1 = Cash paid for taxes ($ 11) NET CASH AFTER OPERATIONS $ 36 20xy interest expense ($ 7) 20xy dividends or distributions 0 = Financing costs ($ 7) = Net cash income $ 29 - 20xx CMLTD CASH AFTER DEBT AMORTIZATION $ 29 20xy depreciation expense ($ 12) + 20xx net fixed assets $ 45 20xy net fixed assets (49) + Other current assets (increase) decrease ($ 4) = Capital expenditures ($ 16) + 20xx investments (CSVLI) 13 20xy investments (CSVLI) 14 = Total long-term investments ($ 172 FINANCING SURPLUS (REQUIREMENT) $ 12 - 20xx notes payable bank short-term ($ 81) + 2Oxy notes payable bank short-term 68 + Short-term debt increase (decrease) ($ 13) + 20xy CMLTD $ 0 + 20xy long-term debt 58 - 20xx long-term debt 48) + Incremental long-term debt $ 10 - 20xx stockholders equity (excl. ret earnings) ($ 2) + 20xy stockholders equity (excl. ret. earnings) 2 + stockholders equity increase (decrease) $ 0 TOTAL EXTERNAL FINANCING ($ 3) CASH AFTER EXTERNAL FINANCING $ 9 ($ 16) $ 40 ($ 11) 0 ($ 11) $ 29 (80) $ 29 ($0) ($ 13) $ 49 (53) (S4) ($ 17) 14 (16) ($ 19) $ 10 ($ 68) 59 ($ 9) $ 0 67 (58) $ 9 ($ 2) 2 $ 0 $ 0 $ 10 Proposed loan request Dry Supply owner Kaitlyn Nieson has requested approximately $60,000 to purchase three new delivery vans in the coming year. Instructions Dry Supply's income and balance sheet spreads, plus the company's UCA cash flow model are provided in Appendix A. Answer the following questions using Dry Supply's financial information and what you have studied about loan structuring. 1. Is this loan request consistent with the profile of a typical wholesaler? 2. Based on the purpose of the loan and the use of funds, what type of borrowing arrangement(s) is (are) most appropriate? 3. Using the financial data, what are feasible repayment terms for Dry Supply for the appropriate borrowing arrangement you identified