You are the loan manager at a local bank. Two companies have approached you about securing a 6-month loan. Based on your calculations above, please comment on the following:

1. Assess and comment on Arrow and Root's PROFITABILITY ratios
2. Which company would you prefer to give the loan to between Arrow and Root? Explain why
3. In 2-3 sentences, describe the concern you would have if you found out that Arrow had upgraded its accounting system this year and the company did not test the new accounting system to make sure that the system was processing data correctly?