LO 3 RATIO Liquidity and Profitability Ratios E8A. BUSINESS APPLICATION Villegas Company is considering applying for a bank loan. Various data from Villegas's classified financial statements follow. 2014 2013 Current assets $100,000 $ 85,000 Total assets 440,000 355,000 Current liabilities 45,000 25,000 Long-term liabilities 75,000 25,000 Owner's equity 320,000 305,000 Sales 600,000 525,000 Net income 30,000 40,000 Its total assets and owner's equity at the beginning of 2013 were $345,000 and $295,000, respectively. 1. Use (a) liquidity analysis and (b) profitability analysis to document Villegas's financial position. (Round to two decimal places.) 2. Discuss Villegas's profitability and liquidity. Do you think it will qualify for a bank loan