Diagnostic Tools - Year 1
Prepared By: Company Name:
Sam Miller Aviator Inc
General Financing Assumptions Value Findings
Owner's Cash Injection into the Business 3.5% Owner's injection might be too low in relation to the amount of money needed
Cash Request as percent of Total Required Funds 8.5% Cash request seems reasonable with respect to total request
     
Loan Assumptions Value Findings
Commercial Loan Interest rate 9.0% Interest rate seems reasonable
Commercial Loan Term in Months                                  84 Loan term seems within range for this type of loan
Commercial Mortgage Interest rate 9.0% Interest rate seems reasonable
Commercial Mortgage Term in Months 240 Loan term seems within range for this type of loan
Debt-Service Coverage 504.7% Calculated loan payments relative to operating proft may be too high
     
Income Statement Value Findings
Gross Margin as a Percent of Sales 35.1% Gross margin percentage seems reasonable
Owner's Compensation Lower Limit Check  $                   661,440 An owner's compensation amount has been established
Owner's Compensation Upper Limit Check 0.3% Owner's compensation seems reasonable
Advertising Expense Levels as a Percent of Sales 3.2% Advertising as a percent of sales seems reasonable
Profitability Levels  $           240,320,048 The business is showing a profit
Profitability as a Percent of Sales 18.2% The projection does not seem highly unreasonable
     
Cash Flow Statement Value Findings
Desired Operating cash Flow Levels  $                                 - The financial projection provides the desired level of cash flow
Line of Credit Drawdowns  $                                 - The business doesn't seem to require a line of credit
Accounts Receivable Ratio to Sales 6.7% Accounts receivable amount as a percent of sales seems reasonable
     
Balance Sheet Value Findings
Does the Year 1 Balance Sheet Balance?  $                                 - The balance sheet does balance
Debt to Equity Ratio 10.0% Very comfortable
     
Breakeven Analysis Value Findings
Do Sales Exceed the Breakeven Level?  $        1,141,413,698 The sales projection exceeds the projected break-even sales level