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Note G - Fair Value Measurements
 12 Months Ended
Apr. 30, 2017
Notes to Financial Statements  
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
April 30, 2017
and
2016:
 
    April 30, 2017   April 30, 2016
(In thousands)   Carrying
Value		   Fair
Value		   Carrying
Value		   Fair
Value
                 
Cash   $
434
     $
434
     $
602
     $
602
  
Finance receivables, net    
357,161
      
287,115
      
334,793
      
268,926
  
Accounts payable    
11,224
      
11,224
      
12,313
      
12,313
  
Revolving credit facilities    
117,944
      
117,944
      
107,902
      
107,902
  
 
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 has had a
third
party appraisal in
November 2012
that indicates 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
April 30, 2017,
will ultimately be 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 and notes payable   The fair value approximates carrying value due to the variable interest rates charged on the borrowings, which reprice frequently.