16. Brown Dog Products presented the following financial information: (4 pts.) December 31 Year 1 S 11,200 12,450 21,000 84,250 Year 2 S 9,750 Cash Accounts receivable Inventory Equipment Accumulated depreciation Total assets 14,350 21,150 88,600 (22.800) .oso S111050 $107650 ccounts payable Dividends payable Salaries payable Income taxes payable Long-term notes payable Common stock Retained earnings Total liabilities & equity S 13,650 6,150 2,300 7,000 19,500 32,050 $18,950 7,950 1,300 6,800 21,000 24,850 26,800 S107.650 30400 Brown Dog Products' operating income for Year 2 totaled $5,300. Net income totale $3,200 and interest expense was $390. Evaluate the financial risk of Brown Dog Products using the financial information provided. Indicate whether you believe that a bank would find this company to be a lending risk. Page 6