Crescent Paints, Inc., a paint manufacturer, has been in business for five years. The company has had modest profits and has experienced few operating difficulties until this year, 2019, when president Alice Becknell discussed her company's working capital problems with you, a loan officer at Granite Bank. Becknell explained that expanding her firm has created difficulties in meeting obligations when they come due and in taking advantage of cash discounts offered by manufacturers for the timely payment of the company's accounts payable. She would like to borrow \(\$ 50,000\) from Granite Bank. At your request, Becknell submits the following financial data for the past two years:

Calculate the following items for both years from the given data and then compare them with the median ratios for paint manufacturers provided by a commercial credit firm:

Required 

Based on your analysis, decide whether and under what circumstances you would grant Becknell's request for a loan. Explain the reasons for your decision.

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Sales revenue... Cost of goods sold Net income.. Dividends.. December 31, 2017, data. Total assets .... Accounts receivable (net). Inventory..... 2019 2018 $2,000,000 $1,750,000 1,320,000 1,170,000 42,000 33,600 22,000 18,000 1,100,000 205,000 350,000