Dora and her husband Jack have owned their business for over 3 years now and they are
Question:
Dora and her husband Jack have owned their business for over 3 years now and they are looking to expand its operations to Edmonton , Alberta. They are in the construction business and have landed a contract to build homes for senior citizens, a project that will give them at least 25 million dollars in revenue for the year 2024 . They have come to see you at the bank for a business loan to support the company's growth as they need a line of credit for 3MM million dollars . Dora and Jack are seasoned professionals and have managed their affairs in a very good manner their personal and business accounts balances are as follows Dora and Jack Personal net worth Own their house in Calgary is worth a 150k mortgage on it . Savings in RRSP 20K dollars approximately 10k in their checking account and Vehicles are paid for and worth 10k each (2) Line of credit for 50k with TD (unused ) credit cards paid every month ,.Dora credit score is 630 and Jack 650 they each pay themselves a salary of 70K a year. Business balance sheet is healthy , after 3 years of operation the company is clearing about 4 million dollars in revenue , business debts are 500k and their A/R is always paired every 30 days . No additional concerns have been identified by you . Only thing that is left to do is utilize the 5c's framework plan to assess their creditworthiness and accept or decline this request.
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley