I'm working on a case study and need help with figuring out the debt part of the model.

Debt (term loan borrowing and line of credit established on Jan 1, 2017):

Revolver:

No maximum credit limit (assume credit line will be large enough to meet whatever you may need to draw to fund a cash shortfall)

6% interest

Term loan:

$300,000 (borrowed on Jan 1, 2017)

5 year loan (principal amortized 20% each year)

7% interest

o Equity: $200,000 in equity invested on Jan 1, 2017 (no subsequent equity capital raises) o Dividends: none o Interest rate % on cash: 2%