Financial Summary Definitions

Commercial Loan Financial Summary Definitions

1. Current Assets
Cash, marketable securities, accounts receivable – trade (net), inventory (net) and other current assets.

2. Account/Trade Receivables
All current accounts and notes and deferred notes, less reserve for bad debts.

3. Inventory-Gross
Value of finished goods, work in progress and raw materials.

4. Fixed Assets
Net value of all land, buildings, machinery, equipment, fixtures, furniture, etc.

5. Total Assets
All current assets, receivables, inventory, fixed assets and amounts due from officers and employees, investments, deferral/prepaid expenses, cash surrender value of life insurance policies and others.

6. Current Liabilities
Bank notes payable, other trade notes payable, accounts payable-trade, other accounts payable, due to officers and employees, taxes-income other, accrued expenses, long term debt due within one year, other current liabilities.

7. Long Term Liabilities
Notes, bonds, and mortgages and other accounts coming due in one year or more.

8. Total Liabilities
All current, long term and other liabilities.

9. Net Sales
All sales less discounts, charge-backs and allowances.

10. Gross Profit
Net sales less the cost of goods sold.

11. Net Operating Profit
Gross profit less: expenses, (selling, general and administrative, interest, depreciation), officer’s compensation, provision for bad debt and other expenses.

12. Net Profit or Loss
Net operating profit, plus other income, less federal, 12. state and local taxes.

13. Gross Revenues
Value of all sales and services provided prior to deducting discounts, charge backs and allowances. This amount is requested to determine