please solve and explain Part 1-2. thanks

EXERCISE 1 In this exercise you will develop a global cash flow and global DSC for Edward and Linda Dezine for 20xz. a Instructions Use the Dezines' Personal Cash Flow Available for Debt Service Worksheet (Appendix A) to develop a global cash flow and DSC for Edward and Linda Dezine for 20x2. To complete this exercise you should use cash flow from the UCA Cash Flow Model (Chapter 10) as the source for the business cash flow of Designs by Dezine, instead of EBITDA used in the examples earlier. As you saw in Calculating Global Cash Flow and in Section 2 of this textbook, EBITDA is one of several ways to express business cash flow. PART 1 Complete the second page of the Personal Cash Flow Available for Debt Service Work- sheet to develop global cash flow and global DSC. PART 2 Explain how these results differ from the example using EBITDA for business cash flow, plus any other adjustments that were made. APPENDIX A: PERSONAL CASH FLOW Personal Cash Flow Available for Debt Service Worksheet Amount $159,888 $159,888 $2,436 8,900 9,728 (2.000) $19,064 $39.518 Name Edward G. and Linda C. Dezine For 20xz Line Item Source Gross Wages Received Wages, salaries Form 1040, no 7 Guaranteed payments Sched. K.1 Form 1065 box 4 Other Form 1040 PFS, other Gross Cash Flow from Wages Other Personal Cash Flow Interest and dividend income Form 1040, lines Ba, 86, and a State/local income tax refund Form 1040, line 10 Alimony received and other income Form 1040. lines 11 and 21 Net proceeds from asset sales Sched. D. Forms 8949 4797A etc Asset purchases (net of related loans) Form 1040, PFS, other Miscellaneous Income Form 1040 PFS. Other IRA pension Social Sec distributions Form 1040, Ines 15a, 16a, and 200 Total Other Personal Cash Flow Cash Flow from Businesses Interests Sole proprietorship income Sched. C line 31 Add: Depreciation and depletion Sched. Clines 12 and 13 Add: Interest expense Sched. Clines 16a and 160 Other (meals/ent, rent, etc.) Sched. C. line 245, 200, 200, etc. Rental real estate income Sched. Eine 20 Add: Interest expense Sched. Eines 12 and 13 Add: Depreciation Sched. E line 18 Farm income Sched. Fine 34 Add: Depreciation Sched. Fine 14 Add: Interest expense Sched. F. lines 21a and 21b Other (rent livestock crop sales, etc) Sched. F Form 4797 other Partnership LLC net distributions Sched K-1 Form 1065). Section L S corporation net distributions Sched. K-1 Form 11205 box 16 Other: Capstock and loan to Scorp Form 1040, PFS other Tot Cash Flow from Business Interests Gross Personal Cash Flow Available for Debt Service, DTI (40%) Basis Taxes, Living Expenses and Other Expenses Federal income tax withheld Form 1040 in 62 Estimated Fed. tax payments Form 1040, line 83 FICA trx withheld of paid State/local income taxes Sched. A line 5 State/local real estate taxes Sched. A line 6 Personal property and other taxes Sched. A lines 7 and 8 Medical expenses Sched. A line 1 Gifts to charity and other expenses Sched. A line 16 and 24 Other living expenses PES or bestimate Other: Insurance expense Form 1040, PFS or other Total Taxes, Living Expenses and Other Net Personal Cash Flow Available for Debt Service, DSC(1.25) Basis 146,472) ($6.954) $171,998 ($224359) (12231) (8.866) 13,221) (188) (1318) (30,885) (41 797) (2/400) (5123,265) $48,733 Various Living Expenses Gross Personal Cash Flow 576,400) Personal Debt Service Coverage (DTI and DSC) 4496 Personal Debt Service. Including Sole Proprietorships Rental RE and Farms Lender Purpose Type First National Bank residential mortgage Anytown Bank car loan various credit cards imputed at 5% Payment $3,800 400 150 Total Monthly Personal Debt Service Total Annual Personal Debt Service 54,350 352,200 Gross Personal Cash Flow Available for Debt Service, DTI (40%) Basis Monthly Gross CFADS DTI Debt-to-Income) Net Personal Cash Flow Available for Debt Service, DSC (1.25x) Basis DSC $171,998 $14,333 30.3% $48,733 0.93 x Global Cash Flow and Global DSC $48,733 Net Personal Cash Flow Available for Debt Service, DSC (1.25) Basis Adjust for Net Distributions IF Using All Cash Flow and Debt Service of Entity Below Partnership LLC net distributions Sched K:1 Form 1065), section L S corporation net distributions Sched. K.1 Form 11205) box 16 Other Adjustments Explanation Total Adjustments Business Cash Flow Available for Debt Service Buss Name Basis or Source Amount Total Business Cash Flow Available for Debt Service Global Cash Flow Available for Debt Service Business Debt Service Lender Anytown Bank Purpose Type vehicles 6 mos. of $2,000) Annual Amis $14,000 Total Annual Business Debt Service Total Annual Personal Debt Service Global Annual Debt Service $14,000 $52 200 $66,200 Global DSC Excess Deficit) GCF after Debt Service EXERCISE 1 In this exercise you will develop a global cash flow and global DSC for Edward and Linda Dezine for 20xz. a Instructions Use the Dezines' Personal Cash Flow Available for Debt Service Worksheet (Appendix A) to develop a global cash flow and DSC for Edward and Linda Dezine for 20x2. To complete this exercise you should use cash flow from the UCA Cash Flow Model (Chapter 10) as the source for the business cash flow of Designs by Dezine, instead of EBITDA used in the examples earlier. As you saw in Calculating Global Cash Flow and in Section 2 of this textbook, EBITDA is one of several ways to express business cash flow. PART 1 Complete the second page of the Personal Cash Flow Available for Debt Service Work- sheet to develop global cash flow and global DSC. PART 2 Explain how these results differ from the example using EBITDA for business cash flow, plus any other adjustments that were made. APPENDIX A: PERSONAL CASH FLOW Personal Cash Flow Available for Debt Service Worksheet Amount $159,888 $159,888 $2,436 8,900 9,728 (2.000) $19,064 $39.518 Name Edward G. and Linda C. Dezine For 20xz Line Item Source Gross Wages Received Wages, salaries Form 1040, no 7 Guaranteed payments Sched. K.1 Form 1065 box 4 Other Form 1040 PFS, other Gross Cash Flow from Wages Other Personal Cash Flow Interest and dividend income Form 1040, lines Ba, 86, and a State/local income tax refund Form 1040, line 10 Alimony received and other income Form 1040. lines 11 and 21 Net proceeds from asset sales Sched. D. Forms 8949 4797A etc Asset purchases (net of related loans) Form 1040, PFS, other Miscellaneous Income Form 1040 PFS. Other IRA pension Social Sec distributions Form 1040, Ines 15a, 16a, and 200 Total Other Personal Cash Flow Cash Flow from Businesses Interests Sole proprietorship income Sched. C line 31 Add: Depreciation and depletion Sched. Clines 12 and 13 Add: Interest expense Sched. Clines 16a and 160 Other (meals/ent, rent, etc.) Sched. C. line 245, 200, 200, etc. Rental real estate income Sched. Eine 20 Add: Interest expense Sched. Eines 12 and 13 Add: Depreciation Sched. E line 18 Farm income Sched. Fine 34 Add: Depreciation Sched. Fine 14 Add: Interest expense Sched. F. lines 21a and 21b Other (rent livestock crop sales, etc) Sched. F Form 4797 other Partnership LLC net distributions Sched K-1 Form 1065). Section L S corporation net distributions Sched. K-1 Form 11205 box 16 Other: Capstock and loan to Scorp Form 1040, PFS other Tot Cash Flow from Business Interests Gross Personal Cash Flow Available for Debt Service, DTI (40%) Basis Taxes, Living Expenses and Other Expenses Federal income tax withheld Form 1040 in 62 Estimated Fed. tax payments Form 1040, line 83 FICA trx withheld of paid State/local income taxes Sched. A line 5 State/local real estate taxes Sched. A line 6 Personal property and other taxes Sched. A lines 7 and 8 Medical expenses Sched. A line 1 Gifts to charity and other expenses Sched. A line 16 and 24 Other living expenses PES or bestimate Other: Insurance expense Form 1040, PFS or other Total Taxes, Living Expenses and Other Net Personal Cash Flow Available for Debt Service, DSC(1.25) Basis 146,472) ($6.954) $171,998 ($224359) (12231) (8.866) 13,221) (188) (1318) (30,885) (41 797) (2/400) (5123,265) $48,733 Various Living Expenses Gross Personal Cash Flow 576,400) Personal Debt Service Coverage (DTI and DSC) 4496 Personal Debt Service. Including Sole Proprietorships Rental RE and Farms Lender Purpose Type First National Bank residential mortgage Anytown Bank car loan various credit cards imputed at 5% Payment $3,800 400 150 Total Monthly Personal Debt Service Total Annual Personal Debt Service 54,350 352,200 Gross Personal Cash Flow Available for Debt Service, DTI (40%) Basis Monthly Gross CFADS DTI Debt-to-Income) Net Personal Cash Flow Available for Debt Service, DSC (1.25x) Basis DSC $171,998 $14,333 30.3% $48,733 0.93 x Global Cash Flow and Global DSC $48,733 Net Personal Cash Flow Available for Debt Service, DSC (1.25) Basis Adjust for Net Distributions IF Using All Cash Flow and Debt Service of Entity Below Partnership LLC net distributions Sched K:1 Form 1065), section L S corporation net distributions Sched. K.1 Form 11205) box 16 Other Adjustments Explanation Total Adjustments Business Cash Flow Available for Debt Service Buss Name Basis or Source Amount Total Business Cash Flow Available for Debt Service Global Cash Flow Available for Debt Service Business Debt Service Lender Anytown Bank Purpose Type vehicles 6 mos. of $2,000) Annual Amis $14,000 Total Annual Business Debt Service Total Annual Personal Debt Service Global Annual Debt Service $14,000 $52 200 $66,200 Global DSC Excess Deficit) GCF after Debt Service