The Worktech Company, a single owner business owned by Sandra Wilson, wishes to finance a new manufacturing building with a $$1,250,000$ purchase price. The company is willing to make a $$250,000$ down payment to bring the requested loan to $$1,000,000.$ Use the following information to calculate the $5$ key ratios used to underwrite the potential loan.

BALANCE SHEET

Cash

$$440,000$

Current liabilities

$$475,000$

Accounts receivable

$$155,000$

Long$-$term liabilities

$435,000$

Inventory

$160,000$

Common stock

$600,000$

Equipment

$945,000$

Retained earnings

$190,000$

Total assets

$$1,700,000$

Total liabilities and equity

$$1,700,000$

The building was appraised at $$1,400,000.$ Net operating income has averaged $$125,000$ for the last $5$ years. The annual debt service is estimated to be $$95,000$ per year. Gross income for the property is anticipated to be approximately $$200,000$ annually, and annual operating expenses are verified to be $$90,000.$ Sandra$$s personal financial information shows that she earns approximately $$12,000$ per month, and currently has the following debts $-$ $$2,500$ mortgage, $$800$ car payments, credit card minimum payments of $$300,$ and $$600$ in other applicable debt.

Assume you are the assigned underwriter for this loan. Calculate the $5$ key commercial lending ratios discussed in this week$$s lessons. In at least $2-3$ paragraphs, compare your ratio calculations to the standards outlined and comment on this loan$$s viability.