Malik Info Services Inc. (MISI) requested a $200,000 long-term loan at your bank. As a Credit analysl, you have been directed by your manager to review the following data sunnitted with MISI's loan application: Calculation for 2019 Value Calculation for 2018 Value Type of Ratio Trend Marks 1 Current Ratio Numerator Denominator Ratio 3.0 2019 37,610 27,076 10,534 2018 3G,333 26,136 10,197 2 Debt to Assets Numerator Denominator Ratio 3.0 Sales Revenue Cost of goods sold Gross profit Operating expenses: Administrative expenses Selling expenses Income from Operations Interest expense Income before tax Income tax expense Net income 3 Return on CSH Equity 3.923 3,880 2,731 479 2,252 658 1,594 3,689 3,950 2,558 535 2,023 628 1,395 Numerator Denominator Ratio 3.0 4 Profit Margin 3.0 Numerator Denominator Ratio 2019 2018 2019 2018 2017 5 Times Interest Earned 3.0 394 355 6,176 3,291 10,216 595 350 6,492 3,101 10,838 5,210 5,140 785 210 11,375 2017 Current Liabilities Account payable Notes payable - Short term 5,980 Acxrued liabilities 3.160 Income lax'ayable Total Current Liabilities Non-Current Liabilities Notes Payalle - Long term Total Liabilities 2,560 5,825 815 210 9,410 Numerator Denominator Ratio 3,160 6 Inventory Turnover Current Assets Cash Short term investments Account receivable Inventory Total Current Assets Non-Current Assets Long-Term investments Property, Plant and Equipment Property, plant and Equipment (PPE) Less: Acoum. Depreciation - PPE Net Property, plant and Equipment 3.0 Numerator Denominator Ratio 8.750 7,735 8,586 19,961 10,101 19,511 15,000 12,600 32,400 42,500 9,300 33,200 7 Should the loan be granted? Why? 2.0 Shareholders' Equity Common Shares Retained earnings Total shareholders' Equity Total Liabilities & Shareholders' Equity 12,600 15,000 20,925 19,382 33,525 34,382 32,500 53,486 53,893 20.0 Colvill Total Assets 2,120 53,893 2,120 53,486 Instructions: From MISI's financial statements above, calculate the ratios included on the right band side for both 2019 and 2018. State ratio category (liquidity, solvency or profitability) and explain the trend from 2018 to 2019 (is the company doing better or worse in 2019?). Place your calculations in the shaded cells to the right of the data table. After analyzing the data, state whether you would grant the loan to MISI and why. Wbco completed, copy your results to the solution box in WileyPlus