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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
You are a Corporate Credit Analyst for your bank. A new corporate customer in the manufacturing sector approached your bank for a large credit facility in the sum of $20 million for production equipment and warehousing. The customer submitted the following financials to you.
List two strengths and two weaknesses of the borrower in relation to credit.

Transcribed Image Text:Year Ended
30-Sept-19
30-Sept-20
30-Sept-21
Assets ($)
Current Assets
Cash And Cash Equivalents
6,714,000
4,851,000
15,982,000
Short Term Investments
27,447,000
32,900,000
44,610,000
Net Receivables
11,256,000
8,881,000
7,987,000
Inventory
1,478,000
491,000
421,000
Other Current Assets
2,115,000
1,614,000
1,566,000
Total Current Assets
49,010,000
48,737,000
70,566,000
Long Term Investments
9,232,000
11,004,000
12,210,000
Property Plant and Equipment
3,044,000
2,346,000
12,326,000
Goodwill
3,866,000
3,309,000
3,115,000
Intangible Assets
539,000
499,000
569,000
Accumulated Amortization
Other Assets
3,906,000
4,920,000
3,603,000
Total Assets
69,597,000
70,815,000
102,389,000
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