MINICASE Burchets. Green had enjoyed the hank trainine course, bat it was good to be startine his first real job in the corporate iendine eroop. Earlier that mornine the boss had handed him a set of finaneial statements for The Hobby Horse Company lne. (HH). Hoboy Horse," she said. "has a $45 million loan from us due at the end of September, asd it is likely to ask ws to roll it over. The compary seems to have rus into some foagh weather recently. and 1 have asked Furze Platt to go dow there this afternoon and see what is happenine. It might do you good to go along with her. Before you go, take a look at these finascial statements and see what you think the problems are. Here's a chance for you to use some of that stuff they tageht you in the training course" Mr. Green was familiar with the HH story. Founded in 1990 , it had rapielly beilt up a chain of discount stores selline materials for crafts and hobbies. However, last year a namber of new store openings coincidine with a poor Christmas season had pushed the company into loss. Management had halied all new construction and put is of its evistine stores up for sale. Mr. Green decided to start with the six-year sammary of HH's balance sheet and income statement (13 Tatle 4.102. Then be turned to examine ia more detail the latest position (S Tables 4.11 and (3) 4.12). TABLE 4.12 Consolidated balance sheet for The Hobby Horse Company inc. (figures in 5 millions). What appear to be the problem areas in HH? Do the financial ratios suggest questions that Ms. Piatt and Mr. Green need to address