The chief executive officer of Ginnys Fashions has included the following financial statements in a loan application submitted to Priority Bank. The company intends to acquire additional equipment and wishes to finance the purchase with a long-term note.

	2015	2014
Balance Sheet
Current Assets	$21,000	$14,000
Long-term Assets	52,000	50,000
Current Liabilities	9,000	7,000
Long-term Liabilities	24,000	26,000
Contributed Capital	25,000	25,000
Retained Earnings	15,000	6,000

	2015	2014
Income Statement
Revenues	$74,000	$70,000
Expenses	56,000	53,000
Statement of Cash Flows
Net cash from operating activities	$9,000	$15,000
Net cash from investing activities	(12,000)	(14,000)
Net cash from financing activities	5,000	7,000
Change in cash balance	--------$2,000	-----------$8,000
Beginning cash balance	9,000	1,000
Ending cash balance	--------$11,000	------------9,000

Assume that you, a bank loan officer, review the financial statements, and recommend whether Ginnys Fashions should be considered for a loan. Support your recommendation with financial ratios. Assume a tax rate of 30 percent. Interest expense is $2,000 in 2015 and $2,000 in 2014.