Balance Sheets December 31, 2004 and 2003 2004 2003 2004 2003 12,597 5,003 2.315 3,000 22,915 $ 8.173 3,517 3.750 3,000 18.440 4,200 $ 375 1.579 5.386 11,540 4.752 15 1,149 4,722 10,638 Assets Current assets Cash Short-term investments Accounts receivable Prepaid Rent Total current assets Property, plant and equipment Land and building Machinery and equipment. Less accumulated depreciation.... Property and equipment, net. Long-term investments.. Other assets Total assets Liabilities Current liabilities: Note payable Accounts payable Accrued wages Taxes payable Total current liabilities Long-term debt. Owner's Equity Total owners' equity... Total liabilities and owners' equity 50,000 20,000 65,553 5,000 70,553 5.775 4776 1,353 283 89,329 20,159 28,369 3.511 31.860 4321 27,569 4,587 211 $50797 27,789 89,329 $ 50,797 Requirement: 1) If this company is asking for loan amount for 8 months, which ratio bank should use to evaluate the paying abilities of this firm? 2) Calculate current ratio, quick ratio 3) Calculate debt ratio, debt to equity ratio and interpret the calculated values. Sales COGS Other expenses profit 2003 500000 300000 25000 175000 2004 600000 250000 35000 215000