based on the following proforma assumption for 2007 should mr dougall provide a loan of $200000 to fis for a warehouse expansion that the company was planning to undertake by the beginning of november 2006. Provide your reasoning. Give a detailed discussion.

left to right 2004 2005 Sales Growth COGS as (%) of Sales 69.26% 73.24% 71.45% 15.87% 1.39% 14.81% 0.54% Wages and Commissions as (%) of Sales Rent (%) Provision for doubtful accounts (%) General Selling Exp(%) General Admin Exp (%) Amortization ($) 19.74% 2.09% 0.72% 3.13% 8.22% 1.72% 6.55% 10300 1.15% 6.43% 24360 Interest Exp Income tax 2.93% 1.83% 1.63% cash as (%) of Sales ACP days Inventory Days GFA Accumulated amortization Acc Payable 14.40% 105 175 34350 2.81% 91 101 34350 10300 46.73% 0.14% 124 101 235660 34660 47.85% 30.90% AY 4 Insert Delete Format Conditional Format as Formatting Table Styles Cell Styles Sort & Find & Filter Select Ideas Cells Editing Ideas "N BELOW: ASSUMPTIONS for Proforma Year 2007 Sales $ COGS as (%) of Sales 2,800,000 71.45% Wages and Commissions as (%) of Sales Rent (%) Provision for doubtful accounts (%) General Selling Exp(%) General Admin Exp (%) Amortization ($) 14.81% 0 0 1.15% 6.43% 26860 Interest Exp Income tax 24164 0.00% cash as (%) of Sales ACP days Inventory Days GFA (only Buliding, as other remain same) Accumulated amortization Acc Payable 0.14% 124 117 435660 51220 114 Net Sales COGS Gross Profit 930110 1599920 2066820 644190 1171760 1476840 285920 428160 589980 253910 22200 306170 11100 Wages and Commissions Rent Provision for doubtful accounts General Selling Exp General Admin Exp Amortization Total Opt Exp 183620 19430 6710 29100 76430 27560 104720 10300 418690 23860 132850 24360 498340 315290 Interest Exp 27230 29220 33750 Net Inc before tax Income Tax Net Inc (loss) -56600 -19750 57890 -56600 - 19750 57890 Proforma Income Statement as of Jan 2007 Net Sales COGS Gross Profit 2800000 2000600 799400 Wages and Commissions Rent Provision for doubtful accounts General Selling Exp General Admin Exp Amortization Total Opt Exp 306170 0 0 23860 132850 26860 489740 Interest Exp 24164 57890 Net Inc before tax Income Tax Net Inc (loss) 57890 left to right 2004 2005 Sales Growth COGS as (%) of Sales 69.26% 73.24% 71.45% 15.87% 1.39% 14.81% 0.54% Wages and Commissions as (%) of Sales Rent (%) Provision for doubtful accounts (%) General Selling Exp(%) General Admin Exp (%) Amortization ($) 19.74% 2.09% 0.72% 3.13% 8.22% 1.72% 6.55% 10300 1.15% 6.43% 24360 Interest Exp Income tax 2.93% 1.83% 1.63% cash as (%) of Sales ACP days Inventory Days GFA Accumulated amortization Acc Payable 14.40% 105 175 34350 2.81% 91 101 34350 10300 46.73% 0.14% 124 101 235660 34660 47.85% 30.90% AY 4 Insert Delete Format Conditional Format as Formatting Table Styles Cell Styles Sort & Find & Filter Select Ideas Cells Editing Ideas "N BELOW: ASSUMPTIONS for Proforma Year 2007 Sales $ COGS as (%) of Sales 2,800,000 71.45% Wages and Commissions as (%) of Sales Rent (%) Provision for doubtful accounts (%) General Selling Exp(%) General Admin Exp (%) Amortization ($) 14.81% 0 0 1.15% 6.43% 26860 Interest Exp Income tax 24164 0.00% cash as (%) of Sales ACP days Inventory Days GFA (only Buliding, as other remain same) Accumulated amortization Acc Payable 0.14% 124 117 435660 51220 114 Net Sales COGS Gross Profit 930110 1599920 2066820 644190 1171760 1476840 285920 428160 589980 253910 22200 306170 11100 Wages and Commissions Rent Provision for doubtful accounts General Selling Exp General Admin Exp Amortization Total Opt Exp 183620 19430 6710 29100 76430 27560 104720 10300 418690 23860 132850 24360 498340 315290 Interest Exp 27230 29220 33750 Net Inc before tax Income Tax Net Inc (loss) -56600 -19750 57890 -56600 - 19750 57890 Proforma Income Statement as of Jan 2007 Net Sales COGS Gross Profit 2800000 2000600 799400 Wages and Commissions Rent Provision for doubtful accounts General Selling Exp General Admin Exp Amortization Total Opt Exp 306170 0 0 23860 132850 26860 489740 Interest Exp 24164 57890 Net Inc before tax Income Tax Net Inc (loss) 57890