Credit Evaluation School - October 2023

Internal Use Only

CLASSIFICATION EXAMPLE – POOR OR WEAK FINANCIAL CONDITION ABC Corporation’s 12-31-x9 audited financial statements reflected TA of $1,200M, TL of $2,000M, and negative NW of $800M. Also reflected was GP of $2,000M, COGS of $1,000M, Operating Expenses of $1,200M, and Net Loss of $200M.

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Internal Use Only

CLASSIFICATION • Clear and concise reasons for classification • Accurate • Include management's response including any commitments (see Management’s Comments, Plans and/or Prospects section) • If the debt was classified at the previous examination, include the information - how classified, and at what amount

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