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2. Conduct a ratio analysis using the income statements and balance sheets for the company below. Explain why or why not this company would qualify for a loan of capital $$ from a bank or other lending institution. Income Statement ($000's) Balance Sheet ($000's) 2010 2009 ASSETS 2010 2009 OPERATING REVENUES CURRENT ASSETS Net Author Fee Revenue 11,995 8,390 Cash and Cash Equivalents 1/203 434 Advertising Revenue 281 192 Restricted Cash 331 Memberships 310 296 Investments 1,363 1.129 Interest & Other Income 409 21 Grants Receivable 1, 100 Accounts Receivable 1,860 1,189 Total Operating Revenues 12,995 8,899 Other Current Assets 52 52 OPERATING EXPENSES Total Current Assets 5,909 2,804 Direct Publishing Expenses 6,680 5,372 Operational Expenses 5,465 4,337 NONCURRENT ASSETS Advertising & Marketing 65 74 Net Fixed Assets 818 235 Total Expenses 12,210 9,783 Other Assets 41 65 Total Assets 6,768 3,104 Operating Income/(Loss) 785 (884) LIABILITIES AND EQUITY PUBLIC SUPPORT CURRENT LIABILITIES Grants 2,054 497 Accounts Payable 573 2BB Less Fundraising Expense 121 Accrued Payroll Liabilities 587 321 Net Public Support 2,054 376 Deferred Revenue 837 618 Total Liabilities 1,997 1,172 40 41 Net Income/(Loss) 2,839 (508) Equity 4,771 1,932 45 Total Liabilities & Equity 6,768 3,104