Jayhawks Small gift shop	Wildcats Specialty clothing store
Total Assets	45,000	150,000
Inventory	30,000	125,000
Liabilities	9,000	85,000
Equity	36,000	65,000
Sales	30,000	100,000
Net Income	8,000	32,000

1. Both of the above businesses have applied for a $50,000 loan. Assume you are the Strategic Management Bank and can only give one loan. In order to determine the company that is the better credit risk, you must calculate the following:
2. (Hint: Consider the impact of the ratios based upon the assumption of each firm receiving the $50K loan.)

3. -A.B.C.D.E.F.G.H.	Currentratio for Jayhawks
   -A.B.C.D.E.F.G.H.	Current ratio for Wildcats
   -A.B.C.D.E.F.G.H.	Quick ratio (acid test) for Jayhawks
   -A.B.C.D.E.F.G.H.	Quick ratio (acid test) for Wildcats
   -A.B.C.D.E.F.G.H.	Total debt ratio for Jayhawks
   -A.B.C.D.E.F.G.H.	Total debt ratio for Wildcats
   -A.B.C.D.E.F.G.H.	Profit margin for Jayhawks
   -A.B.C.D.E.F.G.H.	Profit margin for Wildcats

   A.	.68
   B.	.56
   C.	.27
   D.	1.61
   E.	.62
   F.	1.48
   G.	.32
   H.	1.10