Springfield Bank is evaluating Creek Enterprises, which has requested a $4,130,000 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.

1.) Creek Enterprises's debt ratio is = (Round to two decimal places.)

2.) Creek Enterprises's times interest earned ratio is = (Round to two decimal places.)

3.) Creek Enterprises's fixed-payment coverage ratio is = (Round to two decimal places.)

bt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,130,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industr rages and Creek's recent financial statements, evaluate and recommend appropriate action on the loan request Industry averages Ch i Data Table Debt ratio 046 Times interest eamed ratio 7.22 Cr 197 Fixed-payment coverage ratio Creek Enterprises Income Statement for the Year Ended December 31, 2019 ) eek Enterprises's debt ratio is (Round to two decimal places) $30,019,000 Sales revenue 21,021,000 $8,998,000 Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses $3,026,000 1,828,000 207,000 Lease expense Depreciation expense Total operating expense 997,000 6,058.000 $2,940,000 983 000 $1.957,000 Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate 21% ) 410,970 nter your answer in the answer box and then click Check Answe $1,546,030 Net profits after taxes Less: Prefened stock dividends Eamings available for common stockholders 100 000 $1,446,030 Check Answer parts remaining 020 2:0 i Data Table Bek Enterprises , evaluate and Creek, ala Creek Enterprises Balance Sheet December 31, 2019 46 Liabilities and Stockholders Equity Assets 22 97 Current liabilities Current assets $8,018,000 7,997,000 $1,049,000 Accounts payable 2,992,000 Notes payable 12,007,000 Accruals Cash Marketable securities two decimal plac 527,000 Accounts receivable $16,542,000 7,480,000 $23,528,000 Total current liabilities Inventories Long-term debt (includes financial leases)** Stockholders' equity Preferred stock (25,000 Total current assets $20,124,000 Gross fixed assets (at cost)* Land and buildings $11,018,000 $2,452,000 shares, $4.00 dividend) Common stock (1.09 million shares at $4.50 par) Paid-in capital in excess of par value 20,488,000 Machinery and equipment Furniture and fixtures 4,905,000 7,951,000 $39,457,000 Gross fixed assets 3,981,000 2,017,000 Less: Accumulated depreciation 12,964,000 Retained earnings hen click Check A - X Data Table Enterprises aluate and r Creek, al Inventories 7,480,000 Total current liabilities $16,542.000 Total current assets $23,528,000 Long-term debt (includes financial leases)* Stockholders' equity Preferred stock (25,000 shares, $4.00 dividend) Common stock (1.09 million shares at $4.50 par) Paid-in capital in excess of par value Retained earnings Total stockholders' equity $20,124,000 Gross fixed assets (at cost) Land and buildings $11,018,000 decimal plac $2,452,000 20,488,000 7,951,000 Machinery and equipment Furniture and fixtures 4,905,000 $39,457,000 Gross fixed assets 3,981,000 2,017,000 $13,355,000 12,964,000 $26,493,000 Less: Accumulated depreciation Net fixed assets Total liabilities and $50,021,000 stockholders' equity $50,021,000 Total assets The firm has a 4 year financial lease requiring annual beginning-of-year payments of $207,000. Three years of the lease have yet to run "Required annual principal payments are $782,000