You recently were hired by First Vigilant Bank as the assistant loan officer. Your job description includes evaluating and recommending approval of commercial, real estate, or credit loans. During your first week on the job, the senior loan officer asks you for a second opinion on a loan application from cTek Corporation, a provider of technology products and services for business, government and education One reason for your boss's request is a discrepancy between recent debt levels of cTek and those that existed when the company last made a loan request a few years ago. To assist you in your analysis, you have created a Tableau Dashboard depicting trends in risk and profitability ratios for the most recent ten years. Debt to Equity Tiny Tel DE 2.00 SOK SESEK Det ty 1.00 SIDOR 0.99 So 2011 2013 2013 2014 2015 2018 2017 2018 0.00 2022 1919 2010 3031 ROA Return on Assets vs Return on Equity Times Interest Earned ework CH 0.50 IIIII ITIL 0.00 SOK 2019 2021 2020 2015 2011 2022 2012 2013 2014 2016 2017 2015 ROA ROE 2019 Return on Assets vs Return on Equity 2012 2013 2014 2015 2016 2017 Times Interest Earned 2018 2020 2021 6.00 20% 5.00 15% 4,00 3.00 1036 2.00 596 1.00 0.00 096 2012 2014 2016 2018 2020 , . , .. . , . , , . **+ ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. RO. ROERO..RO. ROARO.. RO.. ROERO. ROE RO..RO.RUARU.. RU.. ** + ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 What were the amounts of total liabilities for cTek in 2012 and in 2021? O$81,000 in 2012 and $86,000 in 2021 $98,000 in 2012 and $194,000 in 2021 $100,000 in 2012 and $200,000 in 2021 Regulee Required 2 > tableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 ELLE Required 2 Required 3 Required 4 Required 5 Required 6 How would you describe the change in cTek's capital structure over the past ten years? The amount of the company's debt has almost doubled. The amount of the company's shareholders' equity has almost doubled. The amounts of the company's debt and shareholders' equity have risen by approximately the same percentages. Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reqqired 3 Required 4 Required 5 Required 6 Which conclusion would you draw from the changes in cTek's capital structure over the past ten years. Other things equal, risk of default is declining. The amount of the company's debt is increasing, but in the same proportion as the rise in equity. An increase in the debt to equity ratio indicates a potential for higher risk of default. 1 1 tableau. Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 What do you take away from the graph of cTek's Times Interest Earned ratio? OcTek's financial leverage is increasing and favorable. The margin of safety to creditors and potential lenders is deteriorating, Looked at in combination with the return on assets, cTek's ability to pay fixed charges in the future is compelling. +able Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 What were the rate of return on assets and the rate of return on equity in 2021? Rate of return on assets, 4.82%; rate of return on equity, 15.64% Rate of return on assets, 15.64%; rate of return on equity, 4.82% O Rate of return on assets, 5%; rate of return on equity, 16% RO.ROERO.RO.ROARO. RO. ROERO. ROERO.RO.ROARO.RO.ROERO.RO ROARO.. 1 99 *+ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 What overall assessment would you provide the senior loan officer regarding cTek's ability to repay a loan if granted? Profitability is increasing, but so is the risk of default. Risk ratios are providing conflicting signals and rates of return are declining. Risk is increasing while profitability is declining. You recently were hired by First Vigilant Bank as the assistant loan officer. Your job description includes evaluating and recommending approval of commercial, real estate, or credit loans. During your first week on the job, the senior loan officer asks you for a second opinion on a loan application from cTek Corporation, a provider of technology products and services for business, government and education One reason for your boss's request is a discrepancy between recent debt levels of cTek and those that existed when the company last made a loan request a few years ago. To assist you in your analysis, you have created a Tableau Dashboard depicting trends in risk and profitability ratios for the most recent ten years. Debt to Equity Tiny Tel DE 2.00 SOK SESEK Det ty 1.00 SIDOR 0.99 So 2011 2013 2013 2014 2015 2018 2017 2018 0.00 2022 1919 2010 3031 ROA Return on Assets vs Return on Equity Times Interest Earned ework CH 0.50 IIIII ITIL 0.00 SOK 2019 2021 2020 2015 2011 2022 2012 2013 2014 2016 2017 2015 ROA ROE 2019 Return on Assets vs Return on Equity 2012 2013 2014 2015 2016 2017 Times Interest Earned 2018 2020 2021 6.00 20% 5.00 15% 4,00 3.00 1036 2.00 596 1.00 0.00 096 2012 2014 2016 2018 2020 , . , .. . , . , , . **+ ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. RO. ROERO..RO. ROARO.. RO.. ROERO. ROE RO..RO.RUARU.. RU.. ** + ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 What were the amounts of total liabilities for cTek in 2012 and in 2021? O$81,000 in 2012 and $86,000 in 2021 $98,000 in 2012 and $194,000 in 2021 $100,000 in 2012 and $200,000 in 2021 Regulee Required 2 > tableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 ELLE Required 2 Required 3 Required 4 Required 5 Required 6 How would you describe the change in cTek's capital structure over the past ten years? The amount of the company's debt has almost doubled. The amount of the company's shareholders' equity has almost doubled. The amounts of the company's debt and shareholders' equity have risen by approximately the same percentages. Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reqqired 3 Required 4 Required 5 Required 6 Which conclusion would you draw from the changes in cTek's capital structure over the past ten years. Other things equal, risk of default is declining. The amount of the company's debt is increasing, but in the same proportion as the rise in equity. An increase in the debt to equity ratio indicates a potential for higher risk of default. 1 1 tableau. Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 What do you take away from the graph of cTek's Times Interest Earned ratio? OcTek's financial leverage is increasing and favorable. The margin of safety to creditors and potential lenders is deteriorating, Looked at in combination with the return on assets, cTek's ability to pay fixed charges in the future is compelling. +able Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 What were the rate of return on assets and the rate of return on equity in 2021? Rate of return on assets, 4.82%; rate of return on equity, 15.64% Rate of return on assets, 15.64%; rate of return on equity, 4.82% O Rate of return on assets, 5%; rate of return on equity, 16% RO.ROERO.RO.ROARO. RO. ROERO. ROERO.RO.ROARO.RO.ROERO.RO ROARO.. 1 99 *+ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 What overall assessment would you provide the senior loan officer regarding cTek's ability to repay a loan if granted? Profitability is increasing, but so is the risk of default. Risk ratios are providing conflicting signals and rates of return are declining. Risk is increasing while profitability is declining.