• The operating cycle of the company The covenants within the CC&Rs that the company did not comply with
• The Common Sized Financial Statement (CC&R s)
• The Cash Flow Statement
• What did management to fall short of the minimum cash requirements?
• Was the company's failure to meet cash balance requirements a result of the company being unable to meet the requirement or because of management actions?
• What could be management's motivation for not complying with the loan's CC&Rs?
• Where was the major portion of the company's working capital used?
• What could management have done to comply with the CC&Rs they agreed to?
• Finally, what does your loan committee want to do about the renewal of this loan? In this area, you can:
  1. Renew the loan without changing the loan conditions.
  2. Renew the loan and modify the conditions to what is now required by the bank to receive loan approval.
  3. Decline the loan.

			UNIT 4 ASSIGNMENT: FINANCIAL STATEMENTS FORMAT	Inputs in Blue Cells
						Cash Change, Balance Sheet	16,845
						Cash Change, Cash Flow Statement	16,845	If not 16,845, INCORRECT
		BALANCE SHEET		CASH FLOWS		COMMON SIZE BALANCE SHEET
		2017	2016	Change		2017 versus 2016
	ASSETS									2017	2016
	Cash	33,411	16,566	16,845		Cash Flow Operations			ASSETS	$	%	$	%
	A/R	260,205	318,768	(58,563)		Net Income	3,155,848		Cash	33,411	1.3%	16,566	0.7%
	Inventory	423,819	352,740	71,079		Depreciation	212,366		A/R	260,205	9.8%	318,768	12.6%
	Other	41,251	29,912	11,339		Chg: (Curr Assets minus- cash)	23,855		Inventory	423,819	16.0%	352,740	13.9%		Current Ratio	1.83
	Current Assets	758,686	717,986	40,700		Chg: Curr Liabiliities	57,167		Other	41,251	1.6%	29,912	1.2%
	PP&E	1,512,675	1,403,220	109,455		CFO	3,401,526		Current Assets	758,686	0.0%	717,986	0.0%		Quick Ratio	0.71
	Goodwill & Other	382,145	412,565	(30,420)					PP&E	1,512,675	57.0%	1,403,220	55.4%
	Total Assets	2,653,506	2,533,771	119,735		Cash Flow Financing			Goodwill & Other	382,145	14.4%	412,565	16.3%
						Chg in Debt	(113,534)		Total Assets	2,653,506	100.0%	2,533,771	100.0%
	Liabilities & Equity					Dividends	2,966,412
	Accounts Payable	378,236	332,004	46,232		CFF	(3,079,946)		Liabilities & Equity
	Wages Payable	14,487	7,862	6,625					Accounts Payable	378,236	14.3%	332,004	13.1%
	Accrued Taxes	21,125	16,815	4,310		Cash Flow Investment			Wages Payable	14,487	0.5%	7,862	0.3%
	Curent Liabilities	413,848	356,681	57,167		Chg: PP&E	109,455		Accrued Taxes	21,125	0.8%	16,815	0.7%
						Chg: Goodwill & Other	(30,420)		Curent Liabilities	413,848	0.0%	356,681	0.0%
	Long Term Debt	679,981	793,515	(113,534)		CFI	(79,035)
									Long Term Debt	679,981	25.6%	793,515	31.3%
	Total Liabilities	1,093,829	1,150,196	(56,367)		CFO + CFF + CFI	242,545
	Equity	1,559,677	1,383,575	176,102		minus Taxes	225,700		Total Liabilities	1,093,829	0.0%	1,150,196	0.0%
	Total	2,653,506	2,533,771	119,735					Equity	1,559,677	58.8%	1,383,575	54.6%
						Change In Cash	16,845		Total	2,653,506	100.0%	2,533,771	100.0%
	Net Income	3,155,848
	Depreciation	212,366
	Dividends Paid	2,966,412
	Taxes	225,700

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