I feel like I am missing some information for this but I may be wrong.

As discussed, I am working with BUYER who is purchasing the Business A in Baltimore, MD for $$1\mathrm{.}4$ million. The tax returns for the Business A show as follows. The $2022$ Gross Sales were $$1,639,057$ and net sales were $$162,359.$ The Compensation of officers was $$64,800$ and Depreciation was $$8,502$ to give additional $$73,302$ to service debt. This gives a total of $$235,661$ in cash to service debt. There is another $$469,716$ in total deductions we can look at$.$ The $2021$ Gross Sales were $$1,259,718$ and net sales were $$138,399.$ The Compensation of officers was $$64,800,$ interest expense was $$12,463$ and Depreciation was $$7,428$ to give additional $$84,691$ to service debt. This gives a total of $$223,090$ in cash to service debt. There is another $$388,526$ in total deductions we can look at$.$ The $2020$ Gross Sales were $$923,440$ and net sales were $$109,747.$ The Compensation of officers was $$64,800,$ interest expense was $$11,534$ and Depreciation was $$6,315$ to give additional $$82,649$ to service debt. This gives a total of $$192,396$ in cash available to service debt. There is another $$317,179$ in total deductions we can look at$.$

Assuming a loan amount of $$1,260,000$ at $11\%$ interest rate $(8\%$ prime rate $+3\%)$ with a $10-$year term, the loan payment would be $$17,356\mathrm{.}50.$ The purchase price is $$1\mathrm{.}4$ million minus $10\%$ downpayment of $$140,000$ is $$1,260,000.$ The year debt payment is $$208,278.$ The goal is also to qualify for an additional $$25,000$ in working capital for inventory.

Total Cash for Debt Payments $$722,519\mathrm{.}71/$ Year Debt Payment $$208,278=$

DCR

According to the BUYER business tax returns, the gross revenues in $2021$ were $$667,583$ and net sales were $$31,612.$ The business has an EIDL loan with a monthly payment of $$698($$$8,376).$ Revolving Business Credit Card that has a monthly payment of $$2549$ which is high.

According to BUYER's credit report, he has a $788$ credit score. He personally has only $$2752\mathrm{.}00$ in monthly debt and his yearly salary from his business is $$38,332\mathrm{.}08($$$3,194\mathrm{.}34).$ He reports another $$28,800($yearly income$)$ real estate rental income $$2,400$ per month. He does not pay himself a lot from the business.