QDAR expects to raise much of its own capital, and to borrow on a guaranteed ten year SBA loan. This provides the bulk of the current financing required.
QDAR's break-even analysis is based on the averages of the first-year figures for total sales by units, and for operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk.
As the profit and loss table shows, QDAR expects to continue its steady growth in profitability over the next three years of operations.
The cash flow projection shows that provisions for ongoing expenses are adequate to meet QDAR's needs as the business generates cash flow sufficient to support operations.
The short-term loan is expected to be paid out within one year, while an SBA loan will be repaid in ten years.
QDAR's projected company balance sheet follows.
The following table outlines some of the more important business ratios for the auto repair industry, as described by the Standard Industry Classifications (SIC) Index code 7538, General Automotive Repair Shops.
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