What is Richardson Repair Services' 20X9 Funded Debt to EBITDA ratio, tested under the following assumptions:

1. The $1MM loan advances on a 6-year amortization

2. The operating line is being tested at 50% average utilization, and

3. EBITDA should be reflected NET of dividends to shareholders"

Select one

1.93x

3.38x

4.2x

2.6x

REVENUES $29,777,206

COST OF SALES 24,625,749

GROSS MARGIN 5,151,457 17.3%

EXPENSES

Executive compensation 446,658

Rent and occupancy 599,293

Depreciation 148,886

Selling, general, and administrative 2,977,721

4,172,558

NET INCOME BEFORE INCOME TAXES EBIT 978,899

INCOME TAXES 146,835

NET INCOME $832,064

New debt: 1,000,000.00

Amortization (months): 72

Number of periods (years): 6

Rate: 5.1%

Annual Payment Credit Line: 3,000,000.00

Spread: Prime: 3.0%

All-in:

Projected utilization: 50.0%

Please show ALL steps to solve for funded debt to EBITDA