oringfiel ot ratio: Indus (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) earned t cover s debt s times Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $30,029,000 Less: Cost of goods sold 21,001,000 Gross profits $9,028,000 Less: Operating expenses Selling expense $2,971,000 General and administrative expenses 1,763,000 Lease expense 235,000 Depreciation expense 1,045,000 Total operating expense 6,014,000 Operating profits $3,014,000 Less: Interest expense 958,000 Net profits before taxes $2,056,000 Less: Taxes (rate = 21%) 431,760 Net profits after taxes $1,624,240 Less: Preferred stock dividends 110,250 Earnings available for common stockholders $1,513,990 in the Print Done (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadshe Creek Enterprises Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Current assets Current liabilities Cash $998,000 Accounts payable $8,009,000 Marketable securities 2,974,000 Notes payable 7,972,000 Accounts receivable 11,992,000 Accruals 513,000 Inventories 7,486,000 Total current liabilities $16,494,000 Total current assets $23,450,000 Long-term debt (includes financial leases)** $18,715,000 Gross fixed assets (at cost)* Stockholders' equity Land and buildings $11,025,000 Preferred stock (24,500 shares, $4.50 dividend) $2,544,000 Machinery and equipment 20,465,000 Common stock (1.11 million Furniture and fixtures 8,010,000 shares at $5.50 par) 6,105,000 Gross fixed assets $39,500,000 Paid-in capital in excess of 4,045,000 Less: Accumulated depreciation 13,022,000 Retained earnings 2,025,000 Net fixed assets $26,478,000 Total stockholders' equity $14,719,000 Total liabilities and par value Print Done Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,370,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages and Creek's recent financial statements, evaluate and recommend appropriate action on the loan request. Creek Enterprises Income Statement: Industry averages Debt ratio Times interest earned ratio Fixed-payment coverage ratio 0.43 7.39 2.00 Creek Enterprises Balance Sheet: Creek Enterprises's debt ratio is 0.71 . (Round to two decimal places.) Creek Enterprises's times interest earned ratio is (Round to two decimal places.) Enter your answer in the answer box and then click Check