EXECUTIVE SUMMARY This paper evaluated the creditworthiness of Advance Medical Technology Corporation (AMT) to determine whether Western National Bank (WNB) should approve the $8M loan request of the former. AMT was assessed based on their credit history‚ financial statements for the past three years (1983- 1985)‚ availability of loan collaterals‚ and an income statement forecast for the succeeding year. Analysis of AMT’s creditworthiness using the 5 C’s of credit revealed that the company passed
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| |Advanced Medical Technology Corporation | |Case Analysis | Executive Summary Advanced Medical Corporation is experiencing significant growth; however‚ large expenditures in R&D and poor inventory
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tendencies of the ratios‚ such as net interest income margin‚ net income margin‚ return on asset‚ return on equity‚ etc.‚ that could be used for forecasting. (4) Simplify the accounts of Balance Sheet‚ Income Statement and Cash Flow Statement. 2. I/S Pro Forma 1.1 Interest Income Graph 2-1 Interest Income Graph 2-1 shows the total interest income of Orrstown from year 2006-2013. As it takes a longer time for small financial institutions to react on the financial crisis‚ the negative interest income
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Advanced Medical Technology Corporation I. Short History: AMT has been in business for three years. The company develops‚ manufactures‚ and sells scientific medical instruments‚ utilizing the latest technology. AMT has experienced enormous growth in sales. However‚ the company’s capital has been used up on heavy spending on research and development and rapid expansion of its sales force. Because of that‚ the company relies heavily on creditors’ money. II. Management Goals: The President
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Advanced Medical Technology corp. 1. AMT is in the business of developing‚ manufacturing and marketing scientific medical instruments‚ needles and catheters for minimal invasive medical treatments. They have a dedicated sales force to sell their products via the medical hospital and doctor’s channel. The industry continues to experience a robust 30% sales growth currently as well in the future. AMT has experienced extraordinary sales growth as can be seen in the Income statement. To maintain their
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Advanced Medical Technology Corp. There are numerous factors‚ apart form the amount involved and security or collateral offered‚ a bank or any lending institution considers when granting a loan to potential borrowers. Some of the most important are a business/company’s financial standing‚ its financial obligations‚ the purpose for borrowing‚ past financial dealings of the borrower and its existing businesses with other entities. All of these are important factors to determine whether or not a bank
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Harvard Business School 9-287-028 Rev. December 1‚ 1991 Advanced Medical Technology Corporation Early in April 1986‚ Tom Winter‚ vice president and loan officer of the Western National Bank of San Francisco‚ California‚ was reviewing a loan request for $8 million from Peter Haskins‚ president of Advanced Medical Technology Corporation. Advanced Medical Technology Corporation (AMT) developed‚ manufactured‚ and sold scientific medical instruments‚ needles and catheters that allowed rapid and less
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Jessica Betts Cecilia Hibbard Celeste Maldonado Niza Oun Jessica Betts Cecilia Hibbard Celeste Maldonado Niza Oun by by Advanced Medical Technology Corporation Advanced Medical Technology Corporation TABLE OF CONTENTS Question 1 2 Question 2 4 question 3 7 question 4 9 question 5 11 question 6 13 1. What has created the need for additional finance by AMT since 1983? Extraordinary sales growth for AMT of 30% annually is resulting in major operating losses‚ and external
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Selected Companies Pro Forma Apple has become very successful in the technology industry. The company has increased its net sales from 2006 to 2007‚ which proves they are making good capital budgeting decisions. A pro forma income statement and balance sheet showing the future planning and growth of a company. The pro forma income statement and balance sheet will explain a cash budget‚ underlying assumptions of calculations‚ calculations of different ratio analysis‚ and make recommendations to management
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CHAPTER 3 TUTORIAL SOLUTIONS 21. Assuming costs vary with sales and a 20 percent increase in sales‚ the pro forma income statement will look like this: MOOSE TOURS INC. Pro Forma Income Statement Sales $ 1‚114‚800 Costs 867‚600 Other expenses 22‚800 EBIT $ 224‚400 Interest 14‚000 Taxable income $ 210‚400 Taxes(35%) 73‚640 Net income $ 136‚760 The payout ratio is constant‚ so the dividends
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