Evaluate the company's short-term and long-term credit worthiness based on financial performance and trend (comparing this year to last year). Include in your evaluation:

Information about performance and trends.

Information about other relevant financial information you consider important to the decision.

Your recommendation regarding whether the bank should grant the loan based on the financial data.

Total debt to equity

2017 - 16,800/6,747 = 2.49 times

2016 - 17,000/4,500 = 3.78 times

Gross profit rate (gross margin %)

2017 10,000/20,000 = 50%

2016 8,500/18,000 = 47.2%

Net Profit Rate (Net margin %)

2017 -3,247/20,000 = 16.2%

2016 - 2,520/18,000 = 14%

2017 on the left- 2016 on the right.

Net sales $20,000 $18,000

Cost of goods sold 10,000 9,500

Gross profit 10,000 9,500

Operating income 6,000 4,800

Interest expense 588 600

Income before income tax 5,412 4,200

Income taxes 2,165 1,680

Net income $3,247 $2,520