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Looking for opinion on the company financial health

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From the point of view of a newly appointed CFO, provide cash flow analysis for the below-mentioned company. The analysis does not have to be numerical. (looking for an opinion on the company's financial health)

The company is privately held, has revenue of $ 5,000,000 per year, has positive net operating cash flow, and has been profitable for the last five years. Net Operating Margin, pre-tax, is approximately 10%. Also, the company has an unused $ 1,000,000 line of credit at BOFA. The line's interest cost is fixed until March 1, 2022, at 5%, and the line requires a monthly payment, interest-only.

Rent of the office space: $ 5000 per month ( will be occupied from June 2021) electricity cost: $ 1400 per month.

Upcoming significant expense: New HVAC system for $ 8000

Reference no: EM132825858

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