ARG Inc, is a manufacturer of dairy products that was formed three years ago by three sisters who, as directors, retain sole ownership of its ordinary share capital. One third of the initial share capital was provided by each sister. However, the company has managed to return a profit in each year of operation as shown in the financial statements.ARG Inc. has an overdraft limit of $3.2 million and pays interest on its overdraft at a rate of 6 percent (6%) per year. The company currently has no long-term debt. Current liabilities consist of trade creditors and overdraft finance in each of the three years as follows:Year201720182019Overdraft ($000)505671,167Trade creditors ($000)4007331,133Interest???The industry averages for firms similar to ARG Inc. areNet Profit Margin9%Creditor days70 daysInterest cover15 timesCurrent ratio21 timesStock days85 daysQuick ratio0.8 timesDebtor days75 daysDEBT/Equity ratio40% (using Book value)Required:As the newly-appointed Chief Financial Officer of ARG Inc. write a report of no more than three pages 1.5 line spacesto the boardwhich discusseswhether the company is likely to be successful if it approaches its bank FCIB for a loan to undertake a project at a cost of $2.5 million. Your discussion should include an analysis of the current financial position and recent financial performance of the company.The report shouldcommenton whether the bank should provide ARG Inc. with the finance and on what basis.Annual Interest should be clearly calculated as part of the leverage analysis.ARG INCIncome Statement for the years ending December 31201920182017($000)($000)($000)Revenue5,20034002600Cost of Goods sold457028062104Profit before interest & tax630594496Interest70343Earnings before tax560560493Tax140140123Net Income420420370Dividends202020Retained profit400400350ARG IncBalance Sheet as at December 31201920182017($000)($000)($000)Fixed Assets1,600 1,200 800 Current AssetsInventory1,450 1,000 600 Accounts Receivable1,400 850 400 2,850 1,850 1,000 Total Assets4,450 3,050 1,800 Current Liabilities2,300 1,300 450 Ordinary shares 1,000 1,000 1,000 Reserves1,150 750 350 Total Liabilities & Owners Equity4,450 3,050 1,800