20X9
ASSETS
CURRENT
Cash	564,911
Trade and other receivables	8,158,139
Unbilled revenue	2,679,949
	11,402,998
EQUIPMENT (Note 3)	541,404
	$ 11,944,402
LIABILITIES
CURRENT
Bank indebtedness	-
Trade and other payables	4,048,068
Government remittances	270,883
	4,318,952
PROMISSORY NOTE	3,500,000
	3,500,000
SHAREHOLDERS EQUITY
Share capital (Note 4)	200
Retained earnings	4,125,250
	4,125,450
	$ 11,944,402

Credit Facilities	Details
New debt:	1,000,000.00
Amortization (months):	72
Number of periods (years):
Rate:	5.1%
Annual Payment
Credit Line:	3,000,000.00
Spread:
Prime:	3.0%
All-in:
Projected utilization:

	20X9
REVENUES	$ 29,777,206
COST OF SALES	24,625,749
GROSS MARGIN	5,151,457
	17.3%
EXPENSES
Executive compensation	446,658
Rent and occupancy	599,293
Depreciation	148,886
Selling, general, and administrative	2,977,721
	4,172,558
NET INCOME BEFORE INCOME TAXES	978,899
INCOME TAXES	146,835
NET INCOME	$ 832,064

Assuming the $1MM loan advances, and testing the operating line of credit at 50% average utilization, what is Richardson Repair Services' 20X9 Debt Service Coverage ratio?

Review Later

3.35x

4.19x

6.19x

5.82x