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    Aiswarya Rachy Johnson p19105 Group G

    Uploaded by

    Athulya Santhosh
    True Thread Ltd. is seeking a loan from Fed bank and has provided financial statements from 2013-2017 to analyze. Key information includes: - Net income has increased each year from $780k to $1.58m - Total assets have grown from $6.58m to $14.25m over the period - The company is requesting a new $2.4m loan at 10% interest to be paid over 2 years - Depreciation of $120k per year is calculated on the new $2.4m long term asset with a 5% rate over a 2 year life.

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    Aiswarya Rachy Johnson p19105 Group G

    Uploaded by

    Athulya Santhosh
    47 views10 pages
    True Thread Ltd. is seeking a loan from Fed bank and has provided financial statements from 2013-2017 to analyze. Key information includes: - Net income has increased each year from $780k to $1.58m - Total assets have grown from $6.58m to $14.25m over the period - The company is requesting a new $2.4m loan at 10% interest to be paid over 2 years - Depreciation of $120k per year is calculated on the new $2.4m long term asset with a 5% rate over a 2 year life.

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    Aiswarya Rachy johnson p19105 group g

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    True Thread Ltd. is seeking a loan from Fed bank and has provided financial statements from 2013-2017 to analyze. Key information includes: - Net income has increased each year from $780k to $1.58m - Total assets have grown from $6.58m to $14.25m over the period - The company is requesting a new $2.4m loan at 10% interest to be paid over 2 years - Depreciation of $120k per year is calculated on the new $2.4m long term asset with a 5% rate over a 2 year life.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    47 views10 pages

    Aiswarya Rachy Johnson p19105 Group G

    Uploaded by

    Athulya Santhosh
    True Thread Ltd. is seeking a loan from Fed bank and has provided financial statements from 2013-2017 to analyze. Key information includes: - Net income has increased each year from $780k to $1.58m - Total assets have grown from $6.58m to $14.25m over the period - The company is requesting a new $2.4m loan at 10% interest to be paid over 2 years - Depreciation of $120k per year is calculated on the new $2.4m long term asset with a 5% rate over a 2 year life.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    TRUE THREAD LTD.

    Author Aiswarya RachyJohnson


    Date 24/06/2020

    To perform a financial analysis to get a loan


    Purpose from Fed bank
    TRUE THREAD LTD.
    Pro Forma Income Statement
    Corporate Tax

    in thousands
    Years 2013 2014 2015 2016
    Net Sales 16230 20355 23505 28206
    Cost of sales 9430 11898 13612 16334
    Gross Profit 6800 8457 9893 11872
    Selling, general, and administrative expenses 5195 6352 7471 8965
    Depricaition 160 180 213 213
    Depreciation for new warehouse 0 0 0 0
    Net interest expense 119 106 94 270
    Pre-tax income 1326 1819 2115 2423
    Income taxes 546 822 925 848
    Net income 780 997 1190 1575

    Dividend 155 200 240 315

    Total net income 625 797 950 1260


    35%

    2017
    33847
    19601
    14246
    10758
    213
    120
    109
    3046
    1066
    1980

    396

    1584
    TRUE THREAD LTD.
    Pro Forma Balance Sheet

    2013 2014 2015 2016 2017


    Assests
    cash 508 609 706 846 1015
    Account Receivable 2,545 3,095 3,652 4,382 5,259
    Inventories 1,630 1,838 2,190 1,625 2,190
    Total current assents 4,683 5,542 6,548 6854 8464
    Gross Plant and equipment 3,232 3,795 4,163 4,996 5,995
    Warehouse 0 0 0 0 2,400
    Depreciation of warehouse 0 0 0 0 120
    Accumulated Depreciation 1,335 1,515 1,728 2,074 2,488
    Net plant and equipments 1,897 2,280 2,435 2,922 5,786

    TOTAl ASSETS 6,580 7,822 8,983 9,776 14,251

    Liabilities
    Current maturities of long-term d 125 125 125 125 125
    Current maturities of new debt 0 0 0 120 120
    Accounts Payable 1,042 1,325 1,440 1,728 2,074
    Accrued expenses 1,145 1,432 1,728 2,074 2,488
    Total current liabilities 2,312 2,882 3,218 4,047 4,807
    Long term debt 1,000 875 750 1718 0
    Common stock 1,135 1,135 1,135 1,362 1,634
    Retained earning 2,133 2,930 3,880 1260 1584
    Total shareholders equity 3,268 4,065 5,015 4340 3218

    TOTAL LIABILITIES 6,580 7,822 8,983 8,387 8,025


    Cash balance 3%
    TRUE THREAD LTD.
    Loan Schedule

    in thousands
    Loan Annual Rate Payments per year Rate per Period(RATE)
    875 10.00% 4 2.50%

    Amortization Schedule
    Year Period Remaining Principal Interest Payment
    1 1 875 ($22)
    1 2 $775 ($19)
    1 3 $672 ($17)
    1 4 $567 ($14)
    2 5 $459 ($11)
    2 6 $349 ($9)
    2 7 $235 ($6)
    2 8 $119 ($3)
    Final Balance $0

    Cummulative Interest and Principal Payment per Year


    YEAR 1 YEAR 2
    1 5
    4 8
    Interest -72 -29
    Principal -416 -459
    Principal Remaining 459 0

    Loan Schedule for new loan

    in thousands
    Loan Annual Rate Payments per year Rate per Period(RATE)
    2400 10.00% 4 2.50%
    Amortization Schedule
    Year Period Remaining Principal Interest Payment
    1 1 2400 ($60.00)
    1 2 $2,125.28 ($53.13)
    1 3 $1,843.69 ($46.09)
    1 4 $1,555.06 ($38.88)
    2 5 $1,259.21 ($31.48)
    2 6 $955.97 ($23.90)
    2 7 $645.15 ($16.13)
    2 8 $326.56 ($8.16)
    Final balance $0.00

    Cummulative Interest and Principal Payment per Year


    YEAR 1 YEAR 2
    1 5
    4 8
    Interest -198.100658899984 -79.6723810762926
    Principal -1140.78586108815 -1259.21413891185
    Principal Remaining 1259.21413891185 0

    Total interest for year 2016


    Total interest for year 2017

    Total principle remainining 2016


    Total principle remainining 2017
    Years Payments(NPER) Payment (PMT)
    2 8 ($122.03)

    Principal Payment Total Payment


    ($100) ($122)
    ($103) ($122)
    ($105) ($122)
    ($108) ($122)
    ($111) ($122)
    ($113) ($122)
    ($116) ($122)
    ($119) ($122)

    TOTAL
    -101
    -875

    Years Payments(NPER) Payment (PMT)


    2 8 ($334.72)
    Principal Payment Total Payment
    ($274.72) ($334.72)
    ($281.59) ($334.72)
    ($288.63) ($334.72)
    ($295.85) ($334.72)
    ($303.24) ($334.72)
    ($310.82) ($334.72)
    ($318.59) ($334.72)
    ($326.56) ($334.72)

    TOTAL
    -277.773039976276
    -2400

    -270
    -109

    1718
    0
    TRUE THREAD LTD.
    Depreciation
    in thousands
    Long Term Asset(cost) 2400
    rate 5%
    Life of Asset 2

    Year
    Straight-Line (SLN) 2016 2017
    Yearly Depreciation 120 120
    Cummulative Depreciation 120 240

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