(Financial analysis) The T. P. Jarmon Company manufactures and sells a line of exclusive sportswear. The firm's sales were $604,000 for the year just ended, and its total assets was $407,600. The company was started by Mr. Jarmon just 10 years ago and has been profitable every year since its inception. The chief financial officer for the firm, Brent Vehlim, has decided to seek a line of credit totaling $85,000 from the firm's bank. In the past, the company has relied on its suppliers to finance a large part of its needs for inventory. However, in recent months tight money conditions have led the firm's suppliers to offer sizable cash discounts to speed up payments for purchases. Mr. Vehlim wants to use the line of credit to replace a large portion of the firm's payables during the summer, which is the firm's peak seasonal sales period. The firm's two most recent balance sheets were presented to the bank in support of its loan request. In addition, the firm's income statement for the year just ended was provided. These statements are found in the popup window: . Mike Ameen, associate credit analyst for the Merchants National Bank of Midland, Michigan, was assigned the task of analyzing Jarmon's loan request. a. Calculate the financial ratios for 2018 corresponding to the industry norms provided in the popup window: b. Which of the ratios reported in the industry norms do you feel should be most crucial in determining whether the bank should extend the line of credit? c. Prepare Jarmon's statement of cash flow for the year ended December 31, 2018. d. Use the information provided by the financial ratios and the cash flow statement to decide if you would support making the loan. a. Calculate the financial ratios for 2018 corresponding to the industry norms provided in the popup window: The current ratio is X. (Round to two decimal places.) Data table Data table T.P. Jarmon Company, Income Statement for the Year Ended 12/31/2018 Sales (all credit) Less cost of goods sold Gross profit \begin{tabular}{rr} $604,000 \\ 469,000 \\ \hline$135,000 \end{tabular} Less operating and interest expenses General and administrative Interest 30,20010,20029,400 Depreciation Total Earnings before taxes Less taxes Net income available to common stockholders \begin{tabular}{ll} $ & 69,800 \\ \hline$ & 65,200 \\ 13,692 \\ \hline$ & 51,508 \end{tabular} Data table Data table (Click on the following icon in order to copy its contents into a spreadsheet.)