Crowley building supply sells various building materials to retail outlets. the company has just approached sycamore state bank requesting a $300,000 loan to strengthen the cash account and to pay certain pressing short-term obligations. the company’s financial statements for the most recent two years follow: crowley building supplycomparative balance sheetsthis year last year assets current assets: cash $ 55,000 $ 140,000 marketable securities 0 18,000 accounts receivable, net 473,000 285,000 inventory 947,000 587,000 prepaid expenses 18,000 25,000 total current assets 1,493,000 1,055,000 plant and equipment, net 1,638,620 1,543,580 total assets $ 3,131,620 $ 2,598,580 liabilities and stockholders' equity liabilities: current liabilities $ 803,000 $ 442,000 bonds payable, 8% 615,000 615,000 total liabilities 1,418,000 1,057,000 stockholders' equity: preferred stock, $25 par, 7% 315,000 315,000 common stock, $10 par 507,000 507,000 retained earnings 891,620 719,580 total stockholders' equity 1,713,620 1,541,580 total liabilities and stockholders' equity $ 3,131,620 $ 2,598,580 crowley building supplycomparative income statement and reconciliationthis year last year sales $ 5,015,000 $ 4,357,000 cost of goods sold 3,866,000 3,430,000 gross margin 1,149,000 927,000 selling and administrative expenses 653,000 534,000 net operating income 496,000 393,000 interest expense 49,200 49,200 net income before taxes 446,800 343,800 income taxes (35%) 156,380 120,330 net income 290,420 223,470 dividends paid: preferred dividends 22,050 22,050 common dividends 96,330 60,840 total dividends paid 118,380 82,890 net income retained 172,040 140,580 retained earnings, beginning of year 719,580 579,000 retained earnings, end of year $ 891,620 $ 719,580 during the past year, the company has expanded the number of lines that it carries in order to stimulate sales and increase profits. it has also moved aggressively to acquire new customers. sales terms are 2/10, n/30. all sales are on account. assume that the following ratios are typical of companies in the building supply industry: current ratio 2.5 acid-test ratio 1.2 average collection period 18 days average sale period 50 days debt-to-equity ratio 0.75 times interest earned 6.0 return on total assets 10 % price-earnings ratio 9 required: 1. sycamore state bank is uncertain whether the loan should be made. to assist it in making a decision, you have been asked to compute the following amounts and ratios for both this year and last year: a. working capital. b. current ratio. (round your answers to 2 decimal places.) c. acid-test ratio. (round your answers to 2 decimal places.) d. average collection period. (the accounts receivable at the beginning of last year totaled $252,000.) (round your intermediate calculations and final answers to 1 decimal place. use 365 days in a year.) e. average sale period. (the inventory at the beginning of last year totaled $505,000.) (round your intermediate calculations and final answers to 1 decimal place. use 365 days in a year.) f. debt-to-equity ratio. (round your answers to 2 decimal places.)g. times interest earned. (round your answers to 1 decimal place.) 2. for both this year and last year: b. present the income statement in common-size form down through net income. (round your percentage answers to 1 decimal place i. e., 0.123 is considered as 12.3. due to rounding, figures may not fully reconcile down a column.)