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Loan Request (what is asked for) = $125,000 Net Income from Operations (NFIO) = $720,000 Current Liabilities = $43,000 Total Assets = $1,250,000 Current Assets
- Loan Request (what is asked for) = $125,000
- Net Income from Operations (NFIO) = $720,000
- Current Liabilities = $43,000
- Total Assets = $1,250,000
- Current Assets = $38,000
- Equity = $425,000
- Nonfarm Income = $28,000
- Return on Farm Assets = 2.7%
- Collateral Value = $170,000
- Depreciation Expense = $54,500
- Management is considered average
- Taxes = $41,000
- Withdrawals for Personal Use = $61,000
- Withdrawals for College and College Related Expenses = $32,000
- Interest on All Farm Loans = $21,400
- Cash Repayment on Term Debt = $24,000
- Replacement Margin = $31,000
- Cash Paid to Purchase Machinery = $24,000
- Operating Ratio = 0.55
Using the dual ratings system and the attached table, find the weighted score and the probability of default. You will have to determine the correct table.
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