Debt Capacity and Cash Flow
Q: I do not know how we got $419,789 on Slide 27. Could you please go over it again?
A: 2015 debt service before any adjustments was the sum of 2015 interest expense of $272,291, plus 2014 current maturities of long-term debt of $137,498, plus 2014 current maturities of subordinated debt of $68,478,. The sum of these three amounts is $488,267. Once we prohibit the pay down of subordinated debt, we reduce $488,267 by $68,478 to arrive at $419,789.
Course overview: Debt Capacity and Cash Flow