Compute the ratios based on case exhibit 3 and based on various ratios computations and their comparison with industry ratios, would you as the loan officer grant the loan request?

EXHIBIT 3: INDUSTRY AVERAGE OF KEY RATIOS Ratio Sector Average Current ratio 2.30:1 Acid test ratio (quick ratio) 1.20:1 Receivable turnover ratio 7 times Receivable days 52 days Inventory turnover ratio 4.85 times Inventory days 75 days Long-term debt to total debt 24% Debt-to-equity ratio 35% Gross profit ratio 40% Net profit ratio 18% Return on equity 22% Return on total assets 10% Total asset turnover ratio 1.1 Fixed asset turnover ratio 2 Current asset turnover ratio 3 Interest coverage ratio (times 10 interest earned) Working capital turnover ratio 8 Return on fixed assets 24%