Barely Edible (BARE) has come to your Bank for a $15 million loan for working capital and the acquisition of real estate and equipment to expand its restaurants. BARE is considered a small cap (capitalized) listed company whose IPO (initial public offering) was in 2015.The company admits that it ran low on funds in the previous year and was just about able to cover a cash shortfall through a very careful financial management. You are assigned the account and are expected to do a full credit analysis. On reviewing some basic company information, you find that there are 700 locations of BARE with about 10% of these operated by franchisees. The chain features ingredient-only sandwiches, that is, no tomatoes, lettuce or anything else included. The customer goes to a buffet and adds any desired toppings that are weighed and charged by the ounce along with the naked sandwich. The typical lunch costs $9.00, comprised of $5.00 for the sandwich, $2.50 for the ingredients, and $1.50 for a drink. A side order of potato chips or coleslaw is included with the sandwich. While this is more expensive than many hamburger chains, the attraction of individualizing the meal has generated considerable interest. The concept has been working successfully although some are not pleased to be charged separately for the basic sandwich and then for the extras. The company considers itself as a premium fast food concept, much like Raisin Bread, a peer company in the industry. The Balance Sheet and Income statement of Barely Edible Company are given below

Balance Sheet as at December 31 ($ in millions)

	2019	2020		2019	2020
Assets			Liabilities and Shareholders Equity
			Accounts Payable	26	39
Cash	9	8	Notes payable	10	10
Short Term Investment	26	22	Accrued expenses	3	7
Accounts Receivable	48	51	Total current Liabilities	39	56
Inventory	26	32
Prepaid Expenses	4	6	Bonds payable	35	30
Total Current Assets	113	119	Mortgage payable	35	30
			Total Long term liabilities	70	60
Plant & Equipment	175	204
Less: Depreciation	-70	-80	Common Equity	17	18
Fixed Assets	105	124	Retained Earnings	92	109
			Total Equity	109	127
Total assets	218	243	Total liabilities and equity	218	243
There are 8,750,000 shares of the BARE common stock issued and outstanding
The market stock price as at December 31, 2019 was $17.40 per share.