Please calculate each step to solve for DSC, including how to calculate EBITDA given the following data.

What is Richardson Repair Services' 20X9 Debt Service Coverage ratio, tested under the following assumptions:

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

2. The operating line is being tested at 75% average utilization, and

3. DSC must be tested NET of dividends to shareholders

Select one: 3.16x 4.3x 2.21x 2.41x

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

DIVIDENDS (166,413)

New debt: 1,000,000.00

Amortization (months): 72

Number of periods (years):

Rate: 5.1%

Annual Payment Credit Line: 3,000,000.00

Spread:

Prime: 3.0%

All-in:

Projected utilization: 75.0%

Operating line utilization: