Mark X

Financial Analysis and Forecasting 35 MARK X social club (A) tell apart X Company manufactures farm and specialty trailers of tout ensemble types. More than 85 percent of the companys gross r withalue come from the western part of the United States, particularly California, although a growing market for custom horse transport vans designed and produced by kale X is developing nation altogethery and even internationally. Also, several(prenominal) major boat companies in California and capital letter have had Mark X design and manufacture trailers for their modern models, and these boat-trailer packages are sold through the boat companies nationwide lead networks. Steve Wing, the president of Mark X, recently received a key out from Karen Dennison, senior vice president of Wells Fargo Bank. Karen told Steve that a inadequacy report generated by the banks computerized analysis strategy had been filed because of Mark Xs deteriorating financial position. The bank requires quarterly financial statements from each of its major loan customers. Information from such(prenominal) statements is fed into the computer, which then calculates key ratios for each customer and charts trends in these ratios. The system also compares the statistics for each company with the average ratios of other ?rms in the same industry and against any protective covenants in the loan agreements.

If any ratio is signi?cantly worse than the industry average, re?ects a marked adverse trend, or fails to meet contractual requirements, the computer highlights the de?ciency. The latest deficiency report on Mark X revealed a number of significant adverse trends and several potentially serious problems (see Tables 1 through 6 for Mark Xs historical ?nancial statements). Particularly disturbing were the 1992 current, quick, and debt ratios, all of which failed to meet the contractual limits of 2.0, 1.0, and 55 percent, respectively. Technically, the bank had a jural right to call all the loans it had extended to Mark X for immediate repayment and, if the loans were not... If you want to get a amply essay, order it on our website: Ordercustompaper.com

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