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? Select one:

3.35x

6.19x

5.82x

4.19x

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 EBIT 978,899

INCOME TAXES 146,835

NET INCOME $832,064

DIVIDENDS (166,413)

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: 50.0%

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