Provide three ratios that would either encourage or discourage lenders considering loaning $100,000 for a 10-year term at 8% interest.

Year 3 800,000 Milavec Company Income Statement and Statement of Retained Earnings For the Years Ending Year 5 Year 4 Sales $ 1,600,000 $ 900,000 $ Cost of Goods Sold Beginning Inventory $ 70,000 $ 43,000 $ Purchases $ 1,078,000 $ 637,000 $ Goods available for sale $ 1,148,000 $ 680,000 $ Ending Inventory $ 60,000 $ 70,000 $ Cost of Goods Sold $ 1,088,000 $ 610,000 $ Gross Margin $ 512,000 $ 290,000 $ Operating Expenses 480,000 $ 248,000 $ Income before taxes $ 32,000 $ 42,000 $ Income taxes $ 12,800 $ 17,000 $ Net Income 19,200 $ 25,000 $ Plus: Beg bal Retained Earnings $ 162,000 $ 137,000 $ Less: Dividends $ 6,000 $ $ Ending Balance Retained Earnings $ 175,200 $ 162,000 $ UUUUUUUU 40,000 483,000 523,000 43,000 480,000 320,000 280,000 40,000 18,000 22,000 130,000 15,000 137,000 Milavec Company Balance Sheet As of December 31 Year 5 Year 4 Year 3 Assets Cash Marketable Securities Notes Receivable Accounts Receivable Merchandise Inventory Prepaid Expenses Property Plant and Equipment (net) Total Assets UUUUU $ $ $ $ $ 36,200 $ 20,000 $ $ 65,000 $ 60,000 $ $ 340,000 $ 521,200 $ 20,000 $ 20,000 $ 4,000 $ 50,000 $ 70,000 $ 4,000 $ 340,000 $ 508,000 $ 17,000 22,000 3,000 56,000 43,000 4,000 310,000 455,000 $ $ Liabilities and Stockholder's Equity Accounts Payable Salaries Payable $ Taxes Payable $ Bonds Payable, 8% $ Preferred Stock, 6%, $100 par, cumulative $ Common Stock, $10 par $ Retained Earnings $ Total Liabilities and Stockholders' Equity $ 40,000 $ 2,000 $ 4,000 $ 100,000 $ 50,000 $ 150,000 $ 175,200 $ 521,200 $ 40,000 $ 2,000 $ 4,000 $ 100,000 $ 50,000 $ 150,000 $ 162,000 $ 508,000 $ 38,000 3,000 2,000 100,000 50,000 125,000 137,000 455,000