(Financial statement analysis) The T. P. Jarmon Company manufactures and sells a line of exclusive sportswear. The firm's sales were $600,100 for the year just ended, and its total assets exceeded $500,000. 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 from the firm's bank totaling $85,000. 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 supplant 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 following tables: Jan Fama, associate credit analyst for the Merchants National Bank of Midland, Michigan, was assigned the task of analyzing Jarmon's loan request. a. Calculate the following financial ratios for 2013 : b. Which of the ratios calculated in part (a) do you think should be most crucial in determining whether the bank should extend the line of credit? c. Use the information provided by the financial ratios and industry-norm ratios to decide if you would support making the loan. Discuss the basis for your recommendation. a. Calculate the following financial ratios for 2013 : T. P. Jarmon's current ratio is (Round to two decimal places.) Data table T. P. Jarmon Company Income Statement for 2013 Sales(allcredit)Less:CostofgoodssoldGrossprofit$600,100(459,900)$140,200 Less: Operating and interest expenses General and administrative Interest Depreciation Total Earnings before taxes Less: Taxes Net income available to common stockholders Less: Cash dividends $(30,000) (9,900) (30,100) $70,200$(70,000) $43,100(27,100) (31,700) Depreciation Total Earnings before taxes Less: Taxes Net income available to common stockholders Less: Cash dividends Change in retained earnings (30,100) $70,200$(70,000) $43,100(27,100) (31,700) $11,400 ick on the icon in order to copy its contents into a spreadsheet.) in order to copy its contents into a spreadsheet.)