TO: STEPHANIE ANDERSON

FROM: JOHN KLEIN

DATE: 18 DECEMBER 1994

RE: CREDIT WORTHINESS OF DAWSON STORES

RECOMMENDATION

Upon analyzing the financial statements provided by Mr. John Dawson, Jr. From my analysis of the statements and data, it is my recommendation that Springfield National Bank provide an unsecured $1,000,000 line of credit to the applicant.

ANALYSIS

Dawson Stores Inc. is worthy of the line of credit due to the successes that they have had in the following areas:

1. Solvency
2. Management of Capital
3. Profitability of the Business
4. Increasing Positive Cash Flow
5. Long-Term Capitalization
6. Prior Business History

1. Solvency

Dawson Stores Inc. has proven to be quite solvent in their ability to meet their short-term debt obligations through quality management in the following areas.

• Net Working Capital: As shown in exhibit 1, the net working capital has increased by 5.8 percent over the past four years. Although this......

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Title: Hampton Machine
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