Applying for a Loan Assets Current assets Cash 14,000 Accounts receivable Total current assets 7,000 21,000 Fixed Assets Property, plant & equipment Accumulated depreciation Net fixed assets Total asets 112,000 (35,000) 77,000 98,000 Liabilities and Owner's Equity Current liabilities Accounts payable Note payable Deposits from customers Total current liabilities 2.500 26.500 5.000 34,000 Total Habilities 34,000 Owner's equity Common stock 30.000 14.000 Retained earnings Total owner's quity Total liabilities and equity 64.000 95.000 Une linice sheet to the process of applying for a lon. The answer to the questions are as follows 11. What is the mount of current assets and long terisicts that you het 12. Calculate the current ratio. Using the rule of thumb given in the text, is this a good or bud ratio Hint: Current ratio current assets current liabilities By the rule of thumb, it should be 2 or greater. The current ratio an indicator of a busmesa ability to repay debt when it is due 13. Why would the current ratio matter to your banker