Scooby, LLC has requested a \$2million RLOC. The financial institution proposed Wallstreet Journal Prime (7\%) plus 1.50% based on todays prime rate, fixed for the term of the loan. The loan will be a 2 year term with interest only pmts due monthly. All principal outstanding and interest will be due at maturity. Collateral will be first real estate mortgage on the commercial real estates appraised for $4 million. Calculate the annual debt service requirement. Proposed Debt Service Interest Expense for New RLOC Interest Expense for other debt CMLTD Total Business Debt Service \begin{tabular}{|rrr|r|} \hline & & & \\ \hline 225 & 248 & 78 & 27 \\ \hline 108 & 95 & 45 & 30 \\ \hline 333 & 343 & 123 & 57 \\ \hline 587 & 93 & 463 & 357 \\ \hline 2.76 & 0.73 & 4.76 & 7.26 \\ \hline \end{tabular} 3 Paragraph y UCA Cash Flow +Net Sales -Change in AR (628) + Change in Bad Debt Reserves Cash Collected from Sales - Cost of Goods Sold +Change in Inventory -Change in AP Trade Cash Paid to Suppliers Cash from Trading -SG\&A Expenses +Depreciation Cash After Operations Other Income Current Income Taxes Change in Income Tax Payable Net Cash After Operations (NCAO) -Interest Expense Change in Interest Payable -Dividends-Common Cash Paid for Dividends \& Interest NET CASH INCOME CMLTD Cash after Debt/Amortization Change in PPEFF + Change in Accum. Depreciation \begin{tabular}{r} (194) \\ \hline(504) \\ (200) \\ (108) \\ \hline(308) \\ 145 \\ 97 \end{tabular} Change in PPEFF Paragraph 3 si +Change in Accum Depreciation Cost of Goods Sold Depreciation Depreciation Gain or Loss on Asset Sale Change in Net Fixed Assets Change in CV Life Insurance Change in Other Assets Change in Investments (132) CASH PAID FOR PLANT AND INVESTMENTS (6) FINANCING SURPLUS/(REQ) Change in Notes Payable Bank Change in Equity Change in Long Term Debt Total External Financing CASH AFTER FINANCING (6) CASH BEGINNING BALANCE CASH Ending Balance (186) DIFFERENCE IN CASH ACCOUNT (494) Total Sources and Uses of Cash DSCR Calculations Net Cash After Operations (NCAO) 304 Proposed Debt Service: RLOC Current Portion Long term Debt 108 Scooby, LLC has requested a \$2million RLOC. The financial institution proposed Wallstreet Journal Prime (7\%) plus 1.50% based on todays prime rate, fixed for the term of the loan. The loan will be a 2 year term with interest only pmts due monthly. All principal outstanding and interest will be due at maturity. Collateral will be first real estate mortgage on the commercial real estates appraised for $4 million. Calculate the annual debt service requirement. Proposed Debt Service Interest Expense for New RLOC Interest Expense for other debt CMLTD Total Business Debt Service \begin{tabular}{|rrr|r|} \hline & & & \\ \hline 225 & 248 & 78 & 27 \\ \hline 108 & 95 & 45 & 30 \\ \hline 333 & 343 & 123 & 57 \\ \hline 587 & 93 & 463 & 357 \\ \hline 2.76 & 0.73 & 4.76 & 7.26 \\ \hline \end{tabular} 3 Paragraph y UCA Cash Flow +Net Sales -Change in AR (628) + Change in Bad Debt Reserves Cash Collected from Sales - Cost of Goods Sold +Change in Inventory -Change in AP Trade Cash Paid to Suppliers Cash from Trading -SG\&A Expenses +Depreciation Cash After Operations Other Income Current Income Taxes Change in Income Tax Payable Net Cash After Operations (NCAO) -Interest Expense Change in Interest Payable -Dividends-Common Cash Paid for Dividends \& Interest NET CASH INCOME CMLTD Cash after Debt/Amortization Change in PPEFF + Change in Accum. Depreciation \begin{tabular}{r} (194) \\ \hline(504) \\ (200) \\ (108) \\ \hline(308) \\ 145 \\ 97 \end{tabular} Change in PPEFF Paragraph 3 si +Change in Accum Depreciation Cost of Goods Sold Depreciation Depreciation Gain or Loss on Asset Sale Change in Net Fixed Assets Change in CV Life Insurance Change in Other Assets Change in Investments (132) CASH PAID FOR PLANT AND INVESTMENTS (6) FINANCING SURPLUS/(REQ) Change in Notes Payable Bank Change in Equity Change in Long Term Debt Total External Financing CASH AFTER FINANCING (6) CASH BEGINNING BALANCE CASH Ending Balance (186) DIFFERENCE IN CASH ACCOUNT (494) Total Sources and Uses of Cash DSCR Calculations Net Cash After Operations (NCAO) 304 Proposed Debt Service: RLOC Current Portion Long term Debt 108
