Villegas Company is considering applying for a bank loan. Various data from Villegas€™s classified financial statements follow.

Its total assets and owner€™s equity at the beginning of 2013 were $345,000 and $295,000, respectively.
1. Use
(a) Liquidity analysis
(b) Profitability analysis to document Villegas€™s financial position. (Round to two decimal places.)
2. Discuss Villegas€™s profitability and liquidity. Do you think it will qualify for a bankloan?

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Current assets Total assets Current liabilities Long-term liabilities Owner's equity Sales Net income 2014 $100,000 440,000 45,000 75,000 320,000 600,000 30,000 2013 85,000 355,000 25,000 25,000 305,000 525,000 40,000