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Diagnostic Tools - Year 1 |
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Prepared By: |
Company Name: |
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Sam Miller |
Aviation Flight Academy |
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General Financing Assumptions |
Value |
Findings |
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Owner's Cash Injection into the Business |
0.0% |
Owner's injection might be too low
in relation to the amount of money needed |
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Cash Request as percent of Total
Required Funds |
2.0% |
Cash request seems
reasonable with respect to total request |
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Loan
Assumptions |
Value |
Findings |
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Commercial Loan Interest rate |
9.0% |
Interest rate seems reasonable |
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Commercial Loan Term in Months |
84 |
Loan term seems
within range for this type of loan |
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Commercial Mortgage Interest rate |
9.0% |
Interest rate seems
reasonable |
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Commercial Mortgage Term in Months |
240 |
Loan term seems
within range for this type of loan |
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Debt-Service Coverage |
-3021.5% |
Calculated loan
payments relative to operating profit seem reasonable |
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Income
Statement |
Value |
Findings |
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Gross Margin as a Percent of Sales |
30.6% |
Gross margin percentage seems
reasonable |
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Owner's Compensation Lower Limit Check |
$
661,440 |
An owner's
compensation amount has been established |
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Owner's Compensation Upper Limit Check |
1.3% |
Owner's compensation
seems reasonable |
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Advertising Expense Levels as a
Percent of Sales |
2.5% |
Advertising as a
percent of sales seems reasonable |
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Profitability Levels |
$
50,284,812 |
The business is
showing a profit |
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Profitability as a Percent of Sales |
21.0% |
The projection may be
too aggressive in stating profitability |
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Cash Flow
Statement |
Value |
Findings |
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Desired Operating cash Flow Levels |
$ - |
The financial projection provides
the desired level of cash flow |
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Line of Credit Drawdowns |
$ - |
The business doesn't
seem to require a line of credit |
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Accounts Receivable Ratio to Sales |
2.1% |
Accounts receivable
amount as a percent of sales seems reasonable |
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Balance Sheet |
Value |
Findings |
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Does the Year 1 Balance Sheet Balance? |
$ - |
The balance sheet does balance |
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Debt to Equity Ratio |
-2.9% |
Very comfortable |
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Breakeven
Analysis |
Value |
Findings |
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Do Sales Exceed the Breakeven Level? |
$
180,557,211 |
The sales projection exceeds the
projected break-even sales level |
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