CREDIT ANALYSIS 1. Use the attached financials for Sage to prepare a Fixed Income Model on excel. Assume the company's balance sheet at the end of 2016 has Bank Debt of $10,000 and Senior Public Notes of $45,000. Sage is a retailer who has significant rent expense. Ignore the debt on the stated financial statements at the end of 2016, as the company is looking to refinance existing debt with the bank debt and public debt noted above. Be sure to include the following: A. Debt multiples, interest coverage and fixed charge coverage based on the new capital structure. Assume normalized cap ex of $5,000 when calculating coverages (but use actual cap ex in financial history section). B. EBITDA margins for all 3 years C. Gross margin for all 3 years D. OCF for all three years. Use actual Cap Ex See attached spreadsheet