Key Concept Exercises and Problem for Chapter 16 - Lelum 1. You have been hired as the new Loan Department Manager in a bunk that has been having troubles in the loan department as identified by the federal auditors. You task is to clean the procedures, the leading policies and reduce the problematic loans so that profitability is restored and the CAMELS score improves. Please take me through the process and set up clear policies and procedures 2. Under which of the six Cs of credit discussed in this chapter does cach of the following pieces of information belong First National Bank discovers there is already a lien against the fixed assets of one of its customers asking for a loan b. Xron Corporation has asked for a type of loan its lender normally refuses to make c. John Selman has an excellent credit rating. d. Smithe Manufacturing Company has achieved higher earnings each year for the past six years. s a prospective customer, Harold Ikels, for his driver's license e Consumers Savings Association's auto loan officer a for another year to Corrin Motors because Merchants Center National Bank is concerned about extending is predicted in the economy. e w in his brother. Charles, to volunteer to conign the n Wes Wilman needs an immediate cash loan and has loan be approved MARC Fance Company checks out Mary Farestimate of her monthly tale-home pay with Mary employer Bryan Sims Doors and Windows 1. Hillsoro Bank and Trust would like to make a loan to Pen-Tab Oil and Gas Company but fears a long-term declined and gas prices First State Bank of Jackson socks the opinion of an expert on the economie outlook in Mexico before granting a loan to a Mexican manufacturer of parts (52) New York is bracing for Big j. First State Bank of Jackson seeks the opinion of an expert on the economic outlook in Mexico before granting a loan to a Mexican manufacturer of auto parts. k. The history of Membres Manufacture and Distributing Company indicates the firm has been through several recent changes of ownership and there has been a substantial shift in its principal suppliers and customers in recent years. 1. Home and Office Savings Bank has decided to review the insurance coverages maintained by its borrowing customer. Plainsman Wholesale Distributors. Problem Mattel Toy Manufacturing has an outstanding $11 million loan with Wells Fargo Bank for the current year. As required in the loan agreement, Mattel reports selected data items to the bank each month. Based on the following information, is there any indication of a developing problem loan? About what dimensions of the firm's performance should Wells Fargo Bank be concerned? Four One Current Month Month Ago $33 557 Two Two Months Ago 551 Three Three Months Ago 544 Months Ago 543 o You Cash account (millions of dollars) Projected sales (millions of dollars) $298 $295 $294 $291 $288 Stock price per share 56.60 $6.50 $6.40 $6.25 $6.50 32.8% 33.99 34.6% 34.99 35.7% (monthly average) Capital structure (equity debt ratio in percent) Liquidity ratio (current assets/ current liabilities) Earnings before interest and taxes (EBIT, in millions of dollars) Return on assets (ROA: percent) 1.10 1.23x 1.35 1.39% 1.25 $15 3.32% $14 3.25% $13 2.98% $13 3.11% 3.13% MacBook Air Mattel Toy Manufacturing has an outstanding Sll million loan with Wells Fargo Bank for the current year. As required in the loan agreement, Mattel reports selected data items to the bank each month. Based on the following information, is there any indication of a developing problem loan? About what dimensions of the firm's performance should Wells Fargo Bank be concerned? e d data items to the best with Wells Fargo Bank on of a developing proble One Current Month Month Ago $33 $57 Two Months Ago $51 Three Months Ago S44 Four Months Ago S43 $298 $295 $294 $291 $288 $6.60 $6.50 $6.40 $6.25 $6.50 32.8% 33.9% 34.6% 34.9% 35.7% Cash account (millions of dollars) Projected sales (millions of dollars) Stock price per share (monthly average) Capital structure (equity/debt ratio in percent) Liquidity ratio (current assets/ current liabilities) Earnings before interest and taxes (EBIT; in millions of dollars) Return on assets (ROA; percent) Sales revenue (millions of dollars) 1.10X 1.23x 1.35 1.39 1.25x $15 3.32% $290 $14 3.25% . $289 $13 2.98% $290 $11 3.13% $289 $13 3.11% $287 Please show all the work and indicate the sources of information using quotation marks when you copy directly from the source Key Concept Exercises and Problem for Chapter 16 - Lelum 1. You have been hired as the new Loan Department Manager in a bunk that has been having troubles in the loan department as identified by the federal auditors. You task is to clean the procedures, the leading policies and reduce the problematic loans so that profitability is restored and the CAMELS score improves. Please take me through the process and set up clear policies and procedures 2. Under which of the six Cs of credit discussed in this chapter does cach of the following pieces of information belong First National Bank discovers there is already a lien against the fixed assets of one of its customers asking for a loan b. Xron Corporation has asked for a type of loan its lender normally refuses to make c. John Selman has an excellent credit rating. d. Smithe Manufacturing Company has achieved higher earnings each year for the past six years. s a prospective customer, Harold Ikels, for his driver's license e Consumers Savings Association's auto loan officer a for another year to Corrin Motors because Merchants Center National Bank is concerned about extending is predicted in the economy. e w in his brother. Charles, to volunteer to conign the n Wes Wilman needs an immediate cash loan and has loan be approved MARC Fance Company checks out Mary Farestimate of her monthly tale-home pay with Mary employer Bryan Sims Doors and Windows 1. Hillsoro Bank and Trust would like to make a loan to Pen-Tab Oil and Gas Company but fears a long-term declined and gas prices First State Bank of Jackson socks the opinion of an expert on the economie outlook in Mexico before granting a loan to a Mexican manufacturer of parts (52) New York is bracing for Big j. First State Bank of Jackson seeks the opinion of an expert on the economic outlook in Mexico before granting a loan to a Mexican manufacturer of auto parts. k. The history of Membres Manufacture and Distributing Company indicates the firm has been through several recent changes of ownership and there has been a substantial shift in its principal suppliers and customers in recent years. 1. Home and Office Savings Bank has decided to review the insurance coverages maintained by its borrowing customer. Plainsman Wholesale Distributors. Problem Mattel Toy Manufacturing has an outstanding $11 million loan with Wells Fargo Bank for the current year. As required in the loan agreement, Mattel reports selected data items to the bank each month. Based on the following information, is there any indication of a developing problem loan? About what dimensions of the firm's performance should Wells Fargo Bank be concerned? Four One Current Month Month Ago $33 557 Two Two Months Ago 551 Three Three Months Ago 544 Months Ago 543 o You Cash account (millions of dollars) Projected sales (millions of dollars) $298 $295 $294 $291 $288 Stock price per share 56.60 $6.50 $6.40 $6.25 $6.50 32.8% 33.99 34.6% 34.99 35.7% (monthly average) Capital structure (equity debt ratio in percent) Liquidity ratio (current assets/ current liabilities) Earnings before interest and taxes (EBIT, in millions of dollars) Return on assets (ROA: percent) 1.10 1.23x 1.35 1.39% 1.25 $15 3.32% $14 3.25% $13 2.98% $13 3.11% 3.13% MacBook Air Mattel Toy Manufacturing has an outstanding Sll million loan with Wells Fargo Bank for the current year. As required in the loan agreement, Mattel reports selected data items to the bank each month. Based on the following information, is there any indication of a developing problem loan? About what dimensions of the firm's performance should Wells Fargo Bank be concerned? e d data items to the best with Wells Fargo Bank on of a developing proble One Current Month Month Ago $33 $57 Two Months Ago $51 Three Months Ago S44 Four Months Ago S43 $298 $295 $294 $291 $288 $6.60 $6.50 $6.40 $6.25 $6.50 32.8% 33.9% 34.6% 34.9% 35.7% Cash account (millions of dollars) Projected sales (millions of dollars) Stock price per share (monthly average) Capital structure (equity/debt ratio in percent) Liquidity ratio (current assets/ current liabilities) Earnings before interest and taxes (EBIT; in millions of dollars) Return on assets (ROA; percent) Sales revenue (millions of dollars) 1.10X 1.23x 1.35 1.39 1.25x $15 3.32% $290 $14 3.25% . $289 $13 2.98% $290 $11 3.13% $289 $13 3.11% $287 Please show all the work and indicate the sources of information using quotation marks when you copy directly from the source