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

What is Richardson Repair Services' 20X9 Debt Service Coverage ratio, tested under the following assumptions: 1. The $1MM loan advances on a 6-year amortization 2. The operating line is being tested at 75% average utilization, and 3. DSC must be tested NET of dividends to shareholders"

Review Later

2.21x

2.41x

4.3x

3.16x