Participants review the mechanics and interpretation of financial projections under two different scenarios. In the first scenario, a borrower's projected income statement, balance sheet, and cash flow are identical to its income statement, balance sheet, and cash flow in the last historical period - except for proposed new debt. In the second scenario, a borrower's project financial and cash flow results are based on a continuation of the borrower's last actual values for its Business Drivers, i.e., last year's actual values for sales growth, gross margins, operating expenses as % of sales, accounts receivable days, etc. Participants review and examine the differences in the projection results under these two scenarios. They explore the reasons for the differences and assess the benefits and limitations of the two scenarios in providing a realistic estimate of future cash flow and debt coverage absent any input from company management.