Creek Enterprises's debt ratio is 0.73 (Round to two decimal places.) Creek Enterprises's times interest earned ratio is 2.93 (Round to two decimal places.) Creek Enterprises's fixed-payment coverage ratio is 1.33 (Round to two decimal places) Complete the following summary of ratios and compare Creek Enterprises's ratios vs. the industry average (Round to two decimal place Debt ratio Times interest earned ratio Fixed-payment coverage ratio Creek Industry 0.73 0.50 2.93 7.26 1.33 198 Do you agree or disagree with the decision below? Because Creek Enterprises has a much higher degree of indebtedness and much lower ability to service debt than the average firm in the inc (Select from the drop-down menu.) Points: 0 of 1 Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $3,740,000 loan, to assess the firm's financial leverage and financial risk. C debt ratios for Creek, along with the industry averages and Creek's recent financial statements, evaluate and recommend appropriate action on the loan request Debt ratio Industry averages Times interest earned ratio. Fixed-payment coverage ratio Creek Enterprises Income Statement: 0.47 7.37 Creek Enterprises Balance Sheet: 2.05 Creek Enterprises's debt ratio is (Round to two decimal places) le Question 8. P3-16 (similar to) HW Score: 43 1 Data table Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $30,006,000 20,951,000 Less: Cost of goods sold Gross profits $9,055,000 Less: Operating expenses Selling expense $2,994,000 General and administrative expenses 1,789,000 Lease expense 153,000 997,000 Depreciation expense 5,933,000 Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 21%) Net profits after taxes Less: Preferred stock dividends Earnings available for common stockholders Print Done $3,122,000 1,034,000 $2,088,000 438,480 $1,649,520 96.000 $1,553,520 1 (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Creek Enterprises Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity Assets Current assets Cash Current liabilities $1,034.000 Accounts payable Marketable securities. 2.991.000 Notes payable Accounts receivable 12,005,000 Accruals Inventories 7,547,000 Total current liabilities Total current assets $23.577,000 Gross fixed assets (at cost) Long-term debt (includes financial leases)" Stockholders' equity Land and buildings $11.005,000 Preferred stock (25.600 Machinery and equipment Fumiture and fixtures. Gross fixed assets 20,514,000 8.005,000 $39,524,000 shares. $3.75 dividend) Common stock (1.03 million. shares at $5.00 par) Paid-in capital in excess of $8,013,000 8,017,000 521,000 $16,551,000 $19,901,000 $2,489,000 5,150,000 ata table Inventories Total current assets Gross fixed assets (at cost)* 7,547,000 Total current liabilities $16,551,000 $23,577,000 Long-term debt (includes financial leases)** $19,901,000 Stockholders' equity Land and buildings $11,005,000 Preferred stock (25,600 shares, $3.75 dividend) $2,489,000 Machinery and equipment 20,514,000 Common stock (1.03 million Furniture and fixtures 8,005,000 shares at $5.00 par) 5,150,000 Gross fixed assets $39,524,000 Paid-in capital in excess of par value 4,035,000 Less: Accumulated depreciation 12,956,000 Retained earnings 2,019,000 Net fixed assets $26,568,000 Total stockholders' equity $13,693,000 Total liabilities and Total assets $50,145,000 stockholders equity $50,145,000 "The firm has a 4-year financial lease requiring annual beginning-of-year payments of $153,000 Three years of the lease have yet to run. **Required annual principal payments are $770,000. -X