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Cash Flow and Loan Amortization Analysis

The document contains accounting information for a bank including: 1) Monthly unadjusted and adjusted cash balance sheets showing receipts, disbursements, and balances for June 30 through July 31. 2) Monthly unadjusted bank balance sheets and adjusted cash balances for November 30 through December 31 including deposit and check information. 3) An amortization schedule for a $10 million loan and calculation of loan impairment at December 31, 2012 based on present value of expected cash flows.

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Quijano Gpokskie
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73 views2 pages

Cash Flow and Loan Amortization Analysis

The document contains accounting information for a bank including: 1) Monthly unadjusted and adjusted cash balance sheets showing receipts, disbursements, and balances for June 30 through July 31. 2) Monthly unadjusted bank balance sheets and adjusted cash balances for November 30 through December 31 including deposit and check information. 3) An amortization schedule for a $10 million loan and calculation of loan impairment at December 31, 2012 based on present value of expected cash flows.

Uploaded by

Quijano Gpokskie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

2.

  June 30 Receipts Disbursement July 31


Unadjusted Book Balance (1.) 504,000 (2.)735,000 (3.)700,000 (4.)539,000
NSF Checks returned –

Nov. and recorded on Dec. (10,000) 10,000


Dec. and recorded on Dec. 25,000 25,000
Dec. and recorded on Jan. 29,000 (29,000)
Customer’s note collected by
bank 106,000 106,000
Anticipated loan proceeds
from AR Hypothecation
Nov. 30 sales (180,000 x 80%) (144,000) 144,000
Dec. 31 sales (200,000 x 80%) (160,000) (160,000)
Anticipated loan payment from
undeposited collections
Nov. 30 (100,000 x 80%) 80,000 80,000
Dec. 31 (140,000 x 80%) (112,000) 112,000
Interest charge from bank loan 38,000 (38,000)
Adjusted Cash Balances 430,000 860,000 760,000 530,000

Nov. 30 Receipts Disbursement Dec. 31


Unadjusted Bank Balance 480,000 240,000 300,000 420,000
Deposit in Transit
November 100,000 (100,000)
December 140,000 140,000
Outstanding checks
November (150,000) (150,000)
December 120,000 (120,000)
Erroneous bank debit – Dec. (90,000) 90,000
Deposits with loan payment
(725,000 x 80%) 580,000 580,000
Adjusted Cash Balances 430,000 860,000 760,000 530,000
3.

Requirement No. 1 & 2

Principal 10,000,000
Direct origination cost 130,900
Origination fee received from borrower (P10M x .05) (500,000)
Carrying amount, 1/1/12 9,630,900

Amortization schedule

Date EI(11%) NI (10%) Disc. Amort. C.A.


1/1/11 9,630,900
12/31/11 1,059,399 1,000,000 59,399 9,690,299
12/31/12 1,065,933 1,000,000 65,933 9,756,232
12/31/13 1,073,186 1,000,000 73,186 9,829,418
12/31/14 1,081,236 1,000,000 81,236 9,910,654
12/31/15 1,089,346 1,000,000 89,346 10,000,000

Requirement No. 3

Carrying amount, 12/31/12 (see schedule) 9,756,232


Less PV of expected cash flows:
12/31/14 (P4M x 0.8116) 3,246,400
12/31/16 (P4M x 0.6587) 2,634,800 5,881,200
Loan impairment (bad debt expense) 3,875,032

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