South, LLC has a shopping center with $22$ local tenants generating gross revenues of $$687,300$; operating expenses of $$321,500$; and interest expense of

$$241,500.$ There is a $$3,450,000$ loan amortizing on a $20-$year basis at a rate of $7$ percent, and the bank's target DSC is $1\mathrm{.}25.$ Which of the following best

describes the cash flow cushion in this scenario?

Very well cushioned

Moderately well cushioned

Slightly lacking adequate cushion

Severely lacking adequate cushion

Bookmark for review