(Complete a set of financial statements, LO 1, 2, 4) Following are three years of bal- ance sheets, income statements, and statements of retained earnings for Alymer Ltd.

Required:

a. Replace the missing information in the shaded areas with the appropriate amount. Begin your analysis in 2004 and work forward.

b. If you were a banker, would you lend Alymer Ltd. $5,000,000? Explain your answer. What additional information would you require to make your decision whether to lend? Explain.

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Alymer Ltd. Balance Sheets As at December 31 (in thousands of dollars) 2006 2005 2004 Current Assets Cash Accounts Receivable Inventory Prepaid Assets Long-Lived Assets Land Plant and Equipment $ 1,000 $ 800 $ 400 3,100 2,800 4,400 4,000 300 100 200 7,100 1,250 1,250 1,250 7,500 6,900 Accumulated Amortization Goodwill Total Assets Current Liabilities (3,700) (3,100) (2,700) 800 900 1,000 5,950 $14,050 6,050 $13,150 Accounts Payable Bank Loan Payable $ 3,000 $ 2,300 334 864 3,664 3,486 Long-Term Liabilities Bonds 2,000 2,200 Shareholders' Equity Capital Stock 1,900 1,700 1,700 Retained Earnings 7,716 6,686 8,386 7,464 Total Liabilities and Shareholders' Equity $14,750 $14,050