As a loan officer for Third Commercial Bank your job description includes evaluating and recommending approval of commercial and real estate loans. On your desk is a loan application from Avantgarde Manufacturing, a producer of household goods. Nine years ago, your bank declined a loan application from AvantgardeOne, partially due to a debt ratio higher than the industry average. The average percentage of assets financed by liabilities rather than shareholders' equity for the manufacturing industry is 50%. The rationale for declining the previous loan request was that too much debt posed a risk of default. To assist you in your analysis of the current loan application, you have created a Tableau Dashboard depicting trends in assets, liabilities, and equity for the most recent ten years. TOTAL ASSETS Total Annets $900,000 $800,000 $700,000 - $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ASSETS = LIABILITIES + STOCKHOLDERS' EQUITY $1,000,000 $800,000 $600,000 $400,000 $200,000 SO 2012 2013 2014 2018 2019 2020 2021 2015 2016 2017 Liabilities Shareholders' Equity # tableau TO Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the following amounts. Assets in 2012 Assets in 2021 Required 1 Required 2 Required 3 Required 4 What does the Dashboard suggest about the size of Avantgarde's manufacturing operations during the most recent ten years? The size of Avantgarde's manufacturing operations as measured by total assets shows steady growth, financed primarily with debt. The size of Avantgarde's manufacturing operations as measured by total assets shows steady growth, financed primarily with shareholders' equity O The size of Avantgarde's manufacturing operations as measured by total assets shows steady growth, financed roughly equally by debt and shareholders' equity. Required 1 Required 2 Required 3 Required 4 What does the data suggest regarding the way in which Avantgarde is financing its assets during the most recent ten years? Liabilities are increasing steadily. Liabilities are decreasing steadily. Shareholders' equity is increasing steadily. O Shareholders' equity is decreasing steadily Required 1 Required 2 Required 3 Required 4 Which possible conclusion is supported by the Dashboard concerning Avantgarde's ability to repay a loan if granted? The bank should decline the loan because the debt ratio is higher than the industry average of 50% for nine of the ten years observed. The bank should consider granting the loan because the debt ratio has declined steadily since the previous loan application and is slightly below the industry average of 50% in the most recent year. The bank probably should decline the loan because the debt ratio has declined steadily since the previous loan application and, in fact, is slightly below the industry average of 50% in the most recent year