Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are the commercial lender for NAIT Bank. Your longtime clientSaxenda Inc Industries is a longstanding client of 24 years. Saxenda Inc is an incorporated

image text in transcribed
You are the commercial lender for NAIT Bank. Your longtime clientSaxenda Inc Industries is a longstanding client of 24 years. Saxenda Inc is an incorporated company with their President on owner being Marvin O'Brien and has been in business for the last 27 years. Saxenda Inc develops gas-fitting devices for the Oil field industry. The company is in Ardrossan just east of Edmonton. They offer their customer 75 Days to settle accounts. Saxenda Inc is looking to secure $800,000 in additional capital as they are looking to expand their current premises to accommodatea new client that they have recently secured. These funds would be used to buy a new machine with the most current level of technology to make the required fittings the client is seeking. They are expecting with this one new account to provide an increase of sales of 25% over the next 7 years. Marvin asked his new CFO Bill, to send you the financial statements that you requested. Bill sent over the un-audited financial statements to you. The audited financials are still with the accountant and will be available in a week or so, but Marvin is pushing to get this loan in place to buy the equipment. Your assistant has collected the industry ratios for you. Bill the CFO has noted that sales have increased in the last three years due to Saxenda Inc's more aggressive selling approach. Marvin is a good client, is eager, and wants to know your response quickly to their request of $800,000. Of course, you must do a complete analysis noting any ratios that are cause for concern or required further explanation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Finance

Authors: Scott Besley, Eugene F. Brigham

2nd Edition

003034509X, 9780030345098

More Books

Students also viewed these Finance questions

Question

What products or services does your key public commonly use?

Answered: 1 week ago

Question

What position do you seek?

Answered: 1 week ago