B 2. Conduct a ratio analysis using the income statements and balance sheets for the company below. Explain why or 3 why not this company would qualify for a loan of capital $$ from a bank or other lending institution. 4 5 6 Income Statement ($000's) Balance Sheet ($000's) 7 8 9 2010 2009 ASSETS 2010 2009 10 OPERATING REVENUES 11 CURRENT ASSETS 12 Net Author Fee Revenue 11,995 8,390 Cash and Cash Equivalents 1,203 434 13 Advertising Revenue 281 192 Restricted Cash 331 14 15 Memberships 310 296 Investments 1,363 1,129 16 Interest & Other Income 409 21 Grants Receivable 1,100 17 18 Accounts Receivable 1,860 Total Operating Revenues 1,189 12,995 8,899 19 Other Current Assets 52 52 20 21 OPERATING EXPENSES Total Current Assets 5,909 2,804 Direct Publishing Expenses 6680 23 Operational Expenses 5,465 24 4.337 NONCURRENT ASSETS 25 Advertising & Marketing 65 74 Net Fixed Assets 818 235 26 Total Expenses Other Assets 12,210 9,783 41 65 Total Assets 6,768 3,104 Operating Income!(Loss) 785 (884) LIABILITIES AND EQUITY PUBLIC SUPPORT 33 CURRENT LIABILITIES Gants 497 Accounts Payable 573 233 Less Fundraising Expense 121 Accrued Payroll Liabilities 587 321 37 Net Public Support 2,054 376 Deferred Revenue 837 618 38 29 Total Liabilities 1,997 1,172 an 41 Net Income/(Loss) 2,839 (508) 42 4,771 1,932 43 44 Total Liabilities & Equity 45 6,768 3,104 48 5,372 S8988 2,054 Equity