To: Rhonda, Owner of Camp Dixie From: ___ your name___ You will likely be able/not be able (put in appropriate choice here, removing red coaching) to borrow $37,000 to buy the bus under the banks current terms. Your profits for a typical year is $xx,xxx with 20 campers and $xx,xxx with 30 campers. That forecast is based current tuition and costs of running the camp, which can change. A schedule of the cash flows and the profits by month are shown below. Notice the profit amounts differ between accrual basis and cash basis because _______explain here______________

CASH BASIS: March April June July August Season Revenue Counselor salary expense Supplies expense Utilities, horses, food Profits ACCRUAL BASIS: Revenue Counselor salary expense Supplies expense Utilities, horses, food Profits At lower levels (20 campers), you can repay the bus loan ____give estimated time interval here___, assuming you dedicate all the cash flow from the summer camp to the loan, without accounting for interest costs or changes in vendor pricing or staff salaries. While this is below the banks 24-month repayment span, you might give the bank assurance by ____________(put your ideas here)____________ to secure the loan. I look forward to our meeting to review your questions and ideas. Attachment: Excel spreadsheet (file name.xlsx)