- You have just been given a job as a loan officer. It is your job to evaluate business loan applications. Your boss would like you to prepare a new set of guidelines to be used by the bank to evaluate loan requests, leading to the approval or denial decision. - Prepare a loan application packet and include the specific quantitative and qualitative information you would want an applicant for a loan to provide to you. - Explain in a brief written report, and show how you would use the requested information to decide whether a loan should be approved. - Answer the following questions: 1. Calculate the profitability ratios. Comment on net profit margin and return on assets ratios if the industry average for these two ratios are 5 percent and 14 percent, respectively. 2. Calculate the liquidity ratios. Comment on the company's ability to pay off short-term debts, 3. Calculate the debt ratios. Would a banker agree to extend a loan? Explain. 4. Calculate the asset activity ratios. Comment on the firm's asset utilization. 5. Calculate the economic value added (EVA) and the market value added (MVA) for Tentacle Acres, assuming that the firm's income tax rate is 35 percent, the weighted average rate of return expected by the suppliers of the firm's capital is 10 percent, and the market price of the firm's stock is $15. There are 5 million shares outstanding. Comment on your results. What do the EVA and MVA values that you calculated indicate? - The consolidated income statement and consolidated balance sheet of Tentacle Acres Company and Subsidiaries are as follows: Income Statement ( 000 dollars) Balance Sheet ( 000 dollars)