Lobbying for Love, Southwest Airlines
Hanson Ski Products - Projected Quarterly Balance Sheets (in $ thousand)
3/31/86 Assets Current Assets Cash Receivables, Net Inventories Prepaid Expenses Total Current Assets Fixed Assets Plant, Property, & Equipt (Less) accum depreciation Total Net Fixed Assets Other Assets Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Notes Payable - banks Income Taxes Payable Current Installments - lt debt Total Current Liabilities Long Term Debt Term Loan Notes Payable to Bank Total Liabilities Stockholders' Equity Common Stock Additional Paid in Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Equity
6/30/86
9/30/86
12/31/86
3/31/87
156 1,556 1,729 262 3,703
100 507 2,808 241 3,656
100 4,580 1,690 294 6,664
100 4,739 1,166 198 6,203
100 1,741 1,869 283 3,993
3,393 (1,255) 2,138 207 6,048
3,570 (1,398) 2,172 201 6,029
3,808 (1,564) 2,244 247 9,155
3,987 (1,743) 2,244 283 8,730
4,288 (1,938) 2,350 302 6,645
1,586 1,547 149 1,010 4,292
1,849 2,176 0 980 5,005
1,717 3,727 0 1,060 6,504
1,755 3,041 0 207 5,003
1,664 1,650 0 189 3,503
0 0 4,292
0 0 5,005
0 0 6,504
0 0 5,003
0 0 3,503
1,249 105 402 1,756 6,048
1,249 105 (330) 1,024 6,029
1,249 105 1,297 2,651 9,155
1,249 105 2,373 3,727 8,730
1,249 105 1,788 3,142 6,645
** Assumes zero dividends
Collateral Tests % of Cost of Inventories % of Cost of Current A/R Total Drawable Amount
70% 80%
1,966 406 2,371 2,176 Yes Yes
1,183 3,664 4,847 3,727 Yes Yes
816 3,791 4,607 3,041 Yes Yes
1,308 1,393 2,701 1,650 Yes Yes
Outstanding Notes Payable Balance 1,547 Test (is balance less than drawable amount?) Test (is outstanding balance less than $4.2mm?)
1. See balance sheet above. The balance sheet tells us that the projections are feasible as long as you are able to draw down on the credit facility. 6/30/86 9/30/86 12/31/86 3/31/87 2. Projected size of bank loan
3/31/86 Assets Current Assets Cash Receivables, Net Inventories Prepaid Expenses Total Current Assets Fixed Assets Plant, Property, & Equipt (Less) accum depreciation Total Net Fixed Assets Other Assets Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Notes Payable - banks Income Taxes Payable Current Installments - lt debt Total Current Liabilities Long Term Debt Term Loan Notes Payable to Bank Total Liabilities Stockholders' Equity Common Stock Additional Paid in Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Equity
6/30/86
9/30/86
12/31/86
3/31/87
156 1,556 1,729 262 3,703
100 507 2,808 241 3,656
100 4,580 1,690 294 6,664
100 4,739 1,166 198 6,203
100 1,741 1,869 283 3,993
3,393 (1,255) 2,138 207 6,048
3,570 (1,398) 2,172 201 6,029
3,808 (1,564) 2,244 247 9,155
3,987 (1,743) 2,244 283 8,730
4,288 (1,938) 2,350 302 6,645
1,586 1,547 149 1,010 4,292
1,849 2,176 0 980 5,005
1,717 3,727 0 1,060 6,504
1,755 3,041 0 207 5,003
1,664 1,650 0 189 3,503
0 0 4,292
0 0 5,005
0 0 6,504
0 0 5,003
0 0 3,503
1,249 105 402 1,756 6,048
1,249 105 (330) 1,024 6,029
1,249 105 1,297 2,651 9,155
1,249 105 2,373 3,727 8,730
1,249 105 1,788 3,142 6,645
** Assumes zero dividends
Collateral Tests % of Cost of Inventories % of Cost of Current A/R Total Drawable Amount
70% 80%
1,966 406 2,371 2,176 Yes Yes
1,183 3,664 4,847 3,727 Yes Yes
816 3,791 4,607 3,041 Yes Yes
1,308 1,393 2,701 1,650 Yes Yes
Outstanding Notes Payable Balance 1,547 Test (is balance less than drawable amount?) Test (is outstanding balance less than $4.2mm?)
1. See balance sheet above. The balance sheet tells us that the projections are feasible as long as you are able to draw down on the credit facility. 6/30/86 9/30/86 12/31/86 3/31/87 2. Projected size of bank loan