1.. LO 5,7 (Learning Objectives 5, 7: Apply GAAP for uncollectible receivables; evaluate liquidity through ratios) Suppose you work in the loan department of Third National Bank. yron Blakely, the owner of Byron's Beauty Solutions, has come to you seeking a loan for DJ00,000 to expand operations. He proposes to use accounts receivable as collateral for the loan and has provided you with the following information from the company's most recent financial statements: 2019 Sales (all on account). Cost of goods sold..... Gross profit... Other expenses. Net profit or (loss) before taxes......... $1,475 876 599 518 $ 81 2018 2017 (In thousands) $1,001 $902 647 605 354 297 287 $ 67 $ 44 253 $ $ 107 $ 94 Accounts receivable.. Allowance for doubtful accounts....... 128 13 Requirement 1. Analyze the trends of sales, days' sales outstanding, and cash collections from customers for 2019 and 2018. Would you make the loan to Blakely? Support your decision with facts and figures. Assume there are no write-offs in 2018 and 2019