If you were a banker, and this firm approached you for a short term 1-year loan for $100,000, 1. What ratios would you calculate (1 mark), and 2. Explain briefly why you would or would not lend them the funds Data Set Pulp Corporation Balance Sheet as at December 31 Assets Cash Accounts Receivable Inventories Current Assets 2019 2020 $90,000 $120,000 367,500 562,500 525,000 663,750 982.500 1.346.250 Plant and Equipment 787.500 881,250 Less Accumulated Amortization 337,500 442.500 Assets Cash $90,000 $120,000 Accounts Receivable 367,500 562,500 Inventories 525,000 663,750 Current Assets 982,500 1,346,250 Plant and Equipment 787,500 881,250 Less Accumulated Amortization 337,500 442,500 Net Plant and Equipment 450,000 438,750 Total Assets Accounts Payable Accrued Expenses Current Liabilities. Bonds Payable $1,432,500 LIABILITIES AND SHAREHOLDER'S EQUITY $1,785,000 510,000 22,500 798.750 532,500 7,500 806,250 525.000 375.000 Accounts Payable Accrued Expenses Current Liabilities Bonds Payable Total Liabilities Common Stock LIABILITIES AND SHAREHOLDER'S EQUITY Retained Earnings Total Shareholder's Equity 510,000 798,750 22,500 7,500 532,500 806,250 525,000 375,000 1,057,500 1,181,250 75,000 225,000 300,000 378,750 375,000 603,750 Total Liabilities' and Shareholders' Equity $1,432,500 $1,785,000 Pulp Corporation Income Statement For the Year Ended December 31, 2020 Pulp Corporation Income Statement For the Year Ended December 31, 2020 Sales $3,750,00C Cost of Goods Sold 2,868,750 Gross Profit 881,250 Gain on Disposition of Capital Asset 382,500 Depreciation 225,000 Operating Profit 273,750 Interest Expense 112,500 Earnings Before Taxes Income Taxes Net Income 161,250 64,5000 $96,750