On an overall basis, total assets increased from a projected balance of $115MM on January 1, 2002 to $159MM on December 31, 2002.
The investment securities portfolio is anticipated to be $19MM as of December 31, 2002.
Projected loan volume increase during 2002 is from $92MM to $127MM.
Cash and Cash Equivalents
Due From Banks – With the loan portfolio increasing by nearly $35MM and total deposits projected to increase by $27MM, a larger cash letter is anticipated.
Due From Banks – Int Bearing – These funds are primarily FHLB deposits. The budget reflects a decrease in the balance by $100M per month during the entire year. The decrease is due to servicing interest on the advances netted against security interest payments.
Fed Funds Sold – Plug.
Pending Loan Disbursements – With the increase in loan production for 2002, the % of PLD to total cash and cash equivalents is anticipated to double from 14% at 1/1/02 to 28% at 12/31/02.
Investment Securities
With the exception of Equity Securities, each security type retains its pro rata share of the entire portfolio at both the beginning of the year and at year end. No assumptions are made for called securities. Each security type reflects the maturing schedule as provided by HFW. Securities are added to the portfolio randomly.
Equity Securities are increased when a new FHLB advance is added.
Loans
Commercial Loans – The total C/L portfolio reflects new loan volume of $23.5 million during 2002. This growth is reduced by an anticipated prepayment rate of 21.28%.
Consumer/H.E. Loans – Growth in this area parallels the growth in total assets (39.13%).
Mortgage Loans – The total M/L portfolio reflects new loan volume of $42MM during 2002. Again, this growth is reduced by an anticipated prepayment rate of 21.28%.
Mortgage Loan Pools – One new pool ($300,000 per pool) is added to the portfolio from April through December. In addition, the prepayment rate of 21.28% applies.
Other Loans and Overdrafts – Growth in this category parallels the growth in total assets (39.13%).
Reserve for Loan Losses – Computed at 1.5% of Gross Loans.
Fixed Assets & Other Assets
Bank Premises & Equipment – Monthly activity reflects a $40,000 increase reflecting beginning of year purchases. Subsequent purchases are slated in April, June, September, and December at $10,000 for each quarter. Monthly depreciation is estimated at approximately $15,000 per month.
ORE – Other Real Estate is calculated at 2% of net loans.
Interest Earned not Collected – The monthly balance is a percentage of gross loans.
The CDC/504 commercial loan rates are fixed to an increment that is above the market of U.S. Treasury 's 5-year and 10-year issues.
Hickman, K. A., Byrd, J. W., & McPherson, M. (2013).Essentials of finance. San Diego, CA: Bridgepoint Education Inc.
... middle of paper ... ... 1. What is the difference between a. and a. What are MCI's needs for future external funds likely to be?
Cash ratio – Big drop (from .35 to .087) in year 2002. In 2003 the rate grew from .087 to .460. The reason of drop in 2002 is decreased in Cash and big increase in Liabilities. The increase in 2003 occurs because of big increase in Cash and slight increase in Liabilities.
Butler’s short-term loan options are completely maxed out, so the company has no cash flexibility. Inventory levels indicate Mark is ramping up in expectation of the massive influx of sales in the warmer months. More of Butler’s sales are in the warm months, when repairs are easier to make in the Inland Northwest. The loan will give Butler the ability to finance more inventory to meet the expected growth in sales.
every 100 contracts the company buys 2 will default on the loan. There is a 2% chance of default
Bhardwaj, G. & Sengupta R. (2012). Subprime mortgage design. Journal of Banking & Finance, 36, 1503-1519
As higher investors generally expect higher returns for a more leveraged firm (Arnold 2013 p 697) there would appear to be very little scope for the RM to increase its debt capital unless it can convince investors profits are likely to profit significantly. Unfortunately the annual report does not suggest such growth is likely short term, due to increased parcel competition and falling letter sales (RM 2015).
As of December 26, 2004, our liquid assets totaled $10,924,000. These assets consisted of cash and cash equivalents in the amount of $10,642,000 and short-term investments in the amount of $282,000. The working capital deficit increased slightly from $50,359,000 as of December 28, 2003 to $51,041,000 as of December 26, 2004. This increase was due primarily to increases in the loss reserve and unearned premiums related to the captive insurance subsidiary and accounts payable and was partially offset by increases in inventories and receivables.
1.0bn working capital line (“Revolving Credit Facility” or “RCL”). While they had learned from their most
... middle of paper ... ... It is now currently 5.24%, which is a big jump for only four weeks. Mortgages are through banks, so that is money they are losing since it is so low right now.
This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Cybrary, the Internet, and course resources to write a 2-page essay which you will use with new clients of your financial planning business which addresses the following issues and/or practices:
Net working capital, is a key figure to watch only if you have several years worth of reports to compare.
The ceiling of $399,000 in borrowing ability placed on the company by the Suburban National Bank is consistently insufficient to meet their growing needs. Sales have increased from $2,921,000 in 1993 to $4,519,000 in 1995. This is an increase of 54%. In addition Clarkson has demonstrated an ability to stay within Suburban's $400,000 limit only by relying heavily on trade credit.
Furthermore, Cocoaland Holdings Berhad has the total revenue of RM50,000,000 in 2015 and RM10,000,000 in 2016. It can be seen that decrease RM40,000,000 compare to this both years. Additionally, this company’s debt consists of 34,685,858 in 2015 and 38,057,668 in 2016. Moreover, it consists of total equity and debt-to-equity ratio inside their capital that is 202,680,654 and 0.17 in 2015 and 2015239,503,310 and 0.16 in 2016. It can conclude that total equity increased and the debt-to-equity ratio was decreased compare to 2015 to