please help with 2A- current ratio and 2C as i cant figure out what im doing wrong. please show work.

Venice Inline, Inc., was founded by Russ Perez to produce a specialized in-line skate he had designed for doing aerial tricks Up to this point, Russ has financed the company with his own savings and with cash generated by his business. However, Russ now faces a cash crisis. In the year just ended, an acute shortage of high-impact roller bearings developed just as the company was beginning production for the Christmas season Russ had been assured by his suppliers that the roller bearings would be delivered in time to make Christmas shipments, but the suppliers were unable to fully deliver on this promise As a consequence Venice InLine had large stocks of unfinished skates of the end of the year and was unable to fill all of the orders that had come in from retailers for the Christmas season Consequently, sales were below expectations for the year, and Russ does not have enough cash to pay his creditors Well before the accounts payable were due, Russ visited a local bank and inquired about obtaining a loan. The loan officer at the bank assured Russ that there should not be any problem getting a loan to pay off his accounts payable-providing that on his most recent financial statements the current ratio was above 20, the acid-test ratio was above 10, and net operating income was at least four times the interest on the proposed loan Russ promised to return later with a copy of his financial statements Russ would like to apply for a $10,000 six-month loon bearing an interest rate of 6% per year. The unaudited financial report of the company appear below Venice InLine, Inc. Comparative Balance Sheet As of December 31 (dollars in thousands) This Yeartast Year $255.0 . 165.0 Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Total assets Liabilities and Stockholders' Equity Current abilities $161.6 95.0 255.0 50.0 581.6 380.0 1961, 545.0 265.a 301310 $961.6 5813.2 $281.0 55.0 336.0 $160.0 40.0 290.0 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Total current liabilities Long-term liabilities Total liabilities Stockholders' equity: Common stock and additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 336.0 200.0 150.0 475.6 625.6 $961.6 150.0 463.0 613.0 $813.0 This Year $665.0 402.0 263.0 Venice Inline, Inc. Income Statement For the Year Ended December 31 (dollars in thousands) Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net Income before taxes Income taxes (38%) Net income 108.0 137.0 245.8 18.0 18. 5.4 $ 12.6 Required: 1-a. Based on the above unaudited financial statement of the current year calculate the following Current ratio Acid-test ratio Number of times of the net operating income to the interest on the proposed loan 1-b Based on the statement made by the loan officer, would the company qualify for the loan? 2 Last year Russ purchased and installed new, more efficient equipment to replace an older plastic injection molding machine Russ had originally planned to sell the old equipment, but found that it is still needed whenever the plastic injection molding process is a bottleneck. When Russ discussed his cash flow problems with his brother in law, he suggested to Russ that the old equipment be sold or at least reclassified as inventory on the balance sheet because t could be readily sold At present, the equipment is carried in the Property and Equipment account and could be sold for its net book value of $93.000. The bank does not require audited financial statements a Calculate the following if the old machine is considered as inventory b. Based on the 20 above would the company quality for the loan? Calculate the following if the old machine is sold of d. Based on the 2e above would the company qualify for the loan? Answer is complete but not entirely correct. Caminate the time Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req IA Reg 18 Reg 2A Reg 20 Req 2c Req 2D Last year Russ purchased and installed new, more efficient equipment to replace an older plastic injection molding machine, Russ had originally planned to sell the old equipment, but found that it is still needed whenever the plastic injection molding process is a bottleneck. When Russ discussed his cash flow problems with his brother-in-law, he suggested to Russ that the old equipment be sold or at least reclassified as inventory on the balance sheet because it could be readily sold. At present, the equipment is carried in the Property and Equipment account and could be sold for its net book value of $93,000. The bank does not require audited financial statements. Calculate the following if the old machine is considered as inventory. (Round your answers to 2 decimal place.) Show less Current ratio Acid-test ratio 2.27 0.82 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Req 2A Req 25 Reg 2c Reg 20 Last year Russ purchased and installed new, more efficient equipment to replace an older plastic injection molding machine, Russ had originally planned to sell the old equipment, but found that it is still needed whenever the plastic injection molding process is a bottleneck. When Russ discussed his cash flow problems with his brother-in-law, he suggested to Russ that the old equipment be sold or at least reclassified as inventory on the balance sheet because it could be readily sold. At present, the equipment is carried in the Property and Equipment account and could be sold for its net book value of $93,000. The bank does not require audited financial statements. Calculate the following if the old machine is sold off. (Round your answers to 1 decimal place.) Show less Current ratio Acid-test ratio 23X 1.4