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Note G - Fair Value Measurements
 9 Months Ended
Jan. 31, 2015
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

G – Fair Value Measurements


The table below summarizes information about the fair value of financial instruments included in the Company’s financial statements at January 31, 2015 and April 30, 2014:


    January 31, 2015   April 30, 2014
(In thousands)   Carrying
Value 		  Fair
Value 		  Carrying
Value 		  Fair
Value
                 
Cash   $ 1,564     $ 1,564     $ 289     $ 289  
Finance receivables, net     329,803       261,422       293,299       233,289  
Accounts payable     13,179       13,179       8,542       8,542  
Revolving credit facilities     112,560       112,560       97,032       97,032  

Because no market exists for certain of the Company’s financial instruments, fair value estimates are based on judgments and estimates regarding yield expectations of investors, credit risk and other risk characteristics, including interest rate and prepayment risk. These estimates are subjective in nature and involve uncertainties and matters of judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The methodology and assumptions utilized to estimate the fair value of the Company’s financial instruments are as follows:


Financial Instrument Valuation Methodology
   
Cash The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instrument.
   
Finance receivables, net The Company estimated the fair value of its receivables at what a third party purchaser might be willing to pay. The Company has had discussions with third parties and has bought and sold portfolios, and had a third party appraisal in November 2012 that indicated a range of 35% to 40% discount to face would be a reasonable fair value in a negotiated third party transaction.  The sale of finance receivables from Car-Mart of Arkansas to Colonial is made at a 38.5% discount.  For financial reporting purposes these sale transactions are eliminated. Since the Company does not intend to offer the receivables for sale to an outside third party, the expectation is that the net book value at January 31, 2015, will be ultimately collected. By collecting the accounts internally the Company expects to realize more than a third party purchaser would expect to collect with a servicing requirement and a profit margin included.
   
Accounts payable The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instrument.
   
Revolving credit facilities The fair value approximates carrying value due to the variable interest rates charged on the borrowings, which reprice frequently.