The Thunderbird Corporation has applied to the Biltmore National Bank for a \($100,000\) loan to purchase new equipment for its manufacturing operations. As part of the loan application, the chief financial officer of Thunderbird submitted the following financial statement information:

Required:

Analyze the financial statement information of The Thunderbird Corporation and indicate whether you believe that the firm’s loan application should be approved. And, if so,why?

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2017 2016 Balance sheet Current assets. Noncurrent assets. Total assets.... Current liabilities Noncurrent liabilities $ 49,000 $ 42,000 175,000 150,500 224,000 192,500 24,500 21,000 91,000 73,500 108,500 98,000 Shareholders' equity Income statement Operating revenues. Operating expenses. Net income... $122,500 $112,000 (80,500) (91,000) $ 42,000 $ 21,000 Statement of cash flow Cash flow from operating activities.. $ 52,500 $ 31,500 Cash flow from investing activities Cash flow from financing activities (49,000) 24,500 (42,000) 17,500 Change in cash $ 28,000 $7,000