Hi, can someone help me to answer the below question based on exhibit 3,4,6,7 that I got from the case study.

How much total bank financing will the company need at the end of 1998, including both the short-term borrowing under the bank credit line and the outstanding amount of the term loan? (For convenience, assume that 1998 sales are $3,000,000)

Exhibit 3 Be Our Guest, Inc. Income Statements Years Ended December 31 1994 1995 1996 1997 Revenue: Rental Income Delivery Income Total Revenue $ 1,620,313 $1,794,807 $ 1,990,853 $2,469,474 156.035 179, 173 168.959 180,567 1,776,348 1,973,980 2,159,812 2,650,041 Cost of Revenue: Salaries Other Cost of Revenue Depreciation 490,968 211,468 116.119 818.555 575,253 302,877 127,906 1,006,036 547,611 347,094 128.299 1,023,004 610,602 419,050 148,707 1,178,359 957.793 967.944 1.136.808 1.471.682 Gross Profit Operating Expenses: General and Administrative Salaries Other General and Admin. Expenses (a) Bad Debt Expense 381,501 402,423 5.702 789,626 434,434 384,863 977 820,274 539,168 420,683 22.186 982,037 840,718 500,384 5.188 1,346,290 168, 167 147,670 154,771 125,392 Earnings from Operations Interest, Net (27,820) (33,912) (44,545) (37,580) 140,347 113,758 110,226 87,812 Net Earnings Distributions To Shareholders Earnings Retained (60.000) (46.700 (195.000 (27.660) $ 80,347 $ 67,058 $ 15,226 $ 60,152 (a) Other General and Administrative Expenses include depreciation of $3,692; $8,322; $14,025; and $22,612 for the years 1994 through 1997 respectively. Exhibit 4 Be Our Guest, Inc. Balance Sheets December 31, 1994 1995 1996 1997 ASSETS $ Current Assets: Cash (Overdraft) Accounts Receivable (a) Loans to Shareholders & Affiliate (b) Other Current Assets Total Current Assets Property and Equipment: Rental Equipment Leasehold Improvements & Other Equipment (2.595) $ 228,333 12,500 682 238,920 565 $ 303,430 21,117 13,332 338,444 645 $ 303,476 30,052 700 334,873 (3,498) 346,109 24,263 2,678 369,552 768,481 102.272 870,753 414.988 455,765 928,391 133,850 1,062,241 551,214 511,027 1,077,484 208.827 1,286,311 679,734 606,577 1,251,080 278,508 1,529,588 851,053 678,535 Less Accumulated Depreciation Net Property and Equipment Other Assets: Loans to Shareholders & Affiliate (b) Total Assets 140,000 130,000 168,000 75,950 $ 834,685 $ 979,471 $ 1,109,450 $ 1,124,037 $ 140,000 75,268 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Borrowings under Bank Line of Credit Current Installments of Term Note Borrowings from Shareholder Accounts Payable and Accounts Total Current Liabilities Term Notes Payable, Less Current Install, Total Liabilities 75,000 $ 32,539 17,000 63,465 188,004 53,388 32,816 69,233 155,437 98,270 $ 70,651 32,816 88,296 290,033 103,155 318,423 226,814 337,109 317,266 243,311 414,818 492,546 607,299 561,734 Shareholders' Equity: Common Stock, $1 Par Value Additional Paid-In Capital Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 2,000 74,000 343,867 419,867 2,000 74,000 410,925 486,925 2,000 2,000 74,000 74,000 426,151 486,303 502,151 562,303 1,109.450 $ 1,124,037 $ 834,685 $ 979.471 $ Notes: (a) Accounts Receivable are shown net of allowance for doubtful accounts of $5,000. (b) As of 12/31/97 loans to shareholders & affiliate were scheduled to be paid down at an annual rate of $24.263. Exhibit 6 Be Our Guest, Inc. 1997 Quarterly Income Statements First Quarter Second Quarter Third Quarter Fourth Quarter $ 237,638 $ 894,434 $ 699,080 $818,888 Total Revenue Cost of Revenue Salaries Other Cost of Revenue Depreciation 68,348 38,860 32,599 139,807 197,406 126,716 32,599 356,720 167,697 114,124 32,599 314,419 177,151 139,350 50.911 367,412 Gross Profit 97,831 537.714 384,661 451,477 Operating Expenses General and Administrative Salaries Other General and Administrative Expenses Bad Debt Expense 125,473 81,241 223,178 140,313 342,974 158,835 149,092 119,996 5,188 274,276 206,714 363,491 501,809 (108,883) 263,438 21,170 (50,332) (9,234) (9,891) (8,950) (9,505) Earnings from Operations Interest, Net Net Earnings Distributions to Shareholders Earnings Retained (118,117) 253,547 12,220 (59,837) (11,000) (16,660) $(129,117) $ 253,547 $ 12,220 $ (76,497) Exhibit 7 Be Our Guest, Inc. 1997 Quarterly Balance Sheets March 31 June 30 Sept. 30 Dec. 31 ASSETS $ 5,338 $ 144,926 38,528 700 189,492 12,882 $ 401,432 50,686 1.630 466.630 39,239 $ 318,698 47,572 2,828 408,337 (3,498) 346,109 24,263 2.678 369,552 Current Assets: Cash (Overdraft) Accounts Receivable Loans to Shareholders & Affiliate Other Current Assets Total Current Assets Net Property and Equipment Other Assets: Loans to Shareholders & Affiliate Total Assets 626,847 685,616 751,304 678,535 71,527 71,527 71,527 75,950 $ 887,867 $1,223,774 $ 1,231,168 $ 1,124,037 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Borrowings under Bank Line of Credit Current Installments of Term Note Accounts Payable and Accruals Total Current Liabilities $ 68,270 $ 71,201 74,649 214,120 97,270 $ 71,826 145,097 314,194 87,270 $ 140,000 72,455 75,268 167,769 103,155 327,494 318,423 243,311 296,281 4.432 278,567 4.432 260,440 4,432 514,833 597,193 592,367 561,734 Term Notes Payable, Less Current Install. Other Term Notes Total Liabilities Shareholders' Equity: Common Stock $1 Par Value Additional Paid-In Capital Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 2,000 74,000 297,034 373,034 2,000 74,000 550,581 626,581 2,000 74,000 562,801 638,801 2,000 74,000 486,303 562,303 $ 887,867 $1,223,774 $1,231,168 $ 1,124,037 Exhibit 3 Be Our Guest, Inc. Income Statements Years Ended December 31 1994 1995 1996 1997 Revenue: Rental Income Delivery Income Total Revenue $ 1,620,313 $1,794,807 $ 1,990,853 $2,469,474 156.035 179, 173 168.959 180,567 1,776,348 1,973,980 2,159,812 2,650,041 Cost of Revenue: Salaries Other Cost of Revenue Depreciation 490,968 211,468 116.119 818.555 575,253 302,877 127,906 1,006,036 547,611 347,094 128.299 1,023,004 610,602 419,050 148,707 1,178,359 957.793 967.944 1.136.808 1.471.682 Gross Profit Operating Expenses: General and Administrative Salaries Other General and Admin. Expenses (a) Bad Debt Expense 381,501 402,423 5.702 789,626 434,434 384,863 977 820,274 539,168 420,683 22.186 982,037 840,718 500,384 5.188 1,346,290 168, 167 147,670 154,771 125,392 Earnings from Operations Interest, Net (27,820) (33,912) (44,545) (37,580) 140,347 113,758 110,226 87,812 Net Earnings Distributions To Shareholders Earnings Retained (60.000) (46.700 (195.000 (27.660) $ 80,347 $ 67,058 $ 15,226 $ 60,152 (a) Other General and Administrative Expenses include depreciation of $3,692; $8,322; $14,025; and $22,612 for the years 1994 through 1997 respectively. Exhibit 4 Be Our Guest, Inc. Balance Sheets December 31, 1994 1995 1996 1997 ASSETS $ Current Assets: Cash (Overdraft) Accounts Receivable (a) Loans to Shareholders & Affiliate (b) Other Current Assets Total Current Assets Property and Equipment: Rental Equipment Leasehold Improvements & Other Equipment (2.595) $ 228,333 12,500 682 238,920 565 $ 303,430 21,117 13,332 338,444 645 $ 303,476 30,052 700 334,873 (3,498) 346,109 24,263 2,678 369,552 768,481 102.272 870,753 414.988 455,765 928,391 133,850 1,062,241 551,214 511,027 1,077,484 208.827 1,286,311 679,734 606,577 1,251,080 278,508 1,529,588 851,053 678,535 Less Accumulated Depreciation Net Property and Equipment Other Assets: Loans to Shareholders & Affiliate (b) Total Assets 140,000 130,000 168,000 75,950 $ 834,685 $ 979,471 $ 1,109,450 $ 1,124,037 $ 140,000 75,268 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Borrowings under Bank Line of Credit Current Installments of Term Note Borrowings from Shareholder Accounts Payable and Accounts Total Current Liabilities Term Notes Payable, Less Current Install, Total Liabilities 75,000 $ 32,539 17,000 63,465 188,004 53,388 32,816 69,233 155,437 98,270 $ 70,651 32,816 88,296 290,033 103,155 318,423 226,814 337,109 317,266 243,311 414,818 492,546 607,299 561,734 Shareholders' Equity: Common Stock, $1 Par Value Additional Paid-In Capital Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 2,000 74,000 343,867 419,867 2,000 74,000 410,925 486,925 2,000 2,000 74,000 74,000 426,151 486,303 502,151 562,303 1,109.450 $ 1,124,037 $ 834,685 $ 979.471 $ Notes: (a) Accounts Receivable are shown net of allowance for doubtful accounts of $5,000. (b) As of 12/31/97 loans to shareholders & affiliate were scheduled to be paid down at an annual rate of $24.263. Exhibit 6 Be Our Guest, Inc. 1997 Quarterly Income Statements First Quarter Second Quarter Third Quarter Fourth Quarter $ 237,638 $ 894,434 $ 699,080 $818,888 Total Revenue Cost of Revenue Salaries Other Cost of Revenue Depreciation 68,348 38,860 32,599 139,807 197,406 126,716 32,599 356,720 167,697 114,124 32,599 314,419 177,151 139,350 50.911 367,412 Gross Profit 97,831 537.714 384,661 451,477 Operating Expenses General and Administrative Salaries Other General and Administrative Expenses Bad Debt Expense 125,473 81,241 223,178 140,313 342,974 158,835 149,092 119,996 5,188 274,276 206,714 363,491 501,809 (108,883) 263,438 21,170 (50,332) (9,234) (9,891) (8,950) (9,505) Earnings from Operations Interest, Net Net Earnings Distributions to Shareholders Earnings Retained (118,117) 253,547 12,220 (59,837) (11,000) (16,660) $(129,117) $ 253,547 $ 12,220 $ (76,497) Exhibit 7 Be Our Guest, Inc. 1997 Quarterly Balance Sheets March 31 June 30 Sept. 30 Dec. 31 ASSETS $ 5,338 $ 144,926 38,528 700 189,492 12,882 $ 401,432 50,686 1.630 466.630 39,239 $ 318,698 47,572 2,828 408,337 (3,498) 346,109 24,263 2.678 369,552 Current Assets: Cash (Overdraft) Accounts Receivable Loans to Shareholders & Affiliate Other Current Assets Total Current Assets Net Property and Equipment Other Assets: Loans to Shareholders & Affiliate Total Assets 626,847 685,616 751,304 678,535 71,527 71,527 71,527 75,950 $ 887,867 $1,223,774 $ 1,231,168 $ 1,124,037 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Borrowings under Bank Line of Credit Current Installments of Term Note Accounts Payable and Accruals Total Current Liabilities $ 68,270 $ 71,201 74,649 214,120 97,270 $ 71,826 145,097 314,194 87,270 $ 140,000 72,455 75,268 167,769 103,155 327,494 318,423 243,311 296,281 4.432 278,567 4.432 260,440 4,432 514,833 597,193 592,367 561,734 Term Notes Payable, Less Current Install. Other Term Notes Total Liabilities Shareholders' Equity: Common Stock $1 Par Value Additional Paid-In Capital Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 2,000 74,000 297,034 373,034 2,000 74,000 550,581 626,581 2,000 74,000 562,801 638,801 2,000 74,000 486,303 562,303 $ 887,867 $1,223,774 $1,231,168 $ 1,124,037