As an analyst for Guaranty Bank, it is your job to write recommendations to the bank'sloan committee. Shamrock Enterprises has submitted these summary data to support the compa-ny's request for a \(\$ 400,000\) loan:

RequiredAnalyze these financial statement data to determine whether the bank should lend \(\$ 400,000\) toShamrock Enterprises. Write a one-paragraph recommendation to the loan committee.

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Income Statement Data: Total revenues Total expenses. Net income..... Selected Statement of Retained Earnings Data: 19X5 19X4 19X3 $890,000 $830,000 $820,000 640,000 570,000 540,000 $250,000 $260,000 $280,000 19X5 19X4 19X3 Dividends 290,000 280,000 270,000 Balance Sheet Data: 19X5 19X4 19X3 Total assets... $730,000 $700,000 $660,000 Total liabilities. $390,000 $320,000 $260,000 Total stockholders' equity 340,000 380,000 400,000 Total liabilities and stockholders' equity. $730,000 $700,000 $660,000