Below are three years of balance sheets, income statements, and statements of retained earnings for Auberndale Ltd.

Required:

a. Replace the missing information in the shaded areas with the appropriate amount. Begin your analysis with 2015 and work forward.

b. If you were a banker, would you lend Auberndale 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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Auberndale Ltd Income Statement For the Year Ended December 31 (in thousands of dollars) 2017 2016 $160,650 Revenue Cost of Goods Sold Gross Margin Expenses Selling Administrative Depreciation Interest Total Expenses Income before Income Taxes Income Taxes Net Income $178,500 99,960 46,410 49,980 22,134 10,710 4,641 1785 9,996 3,570 2,712 35,913 14,067 17,850 9,639 2,856 33,201 14,280 5,427 4113 $ 9,096 Auberndale Ltd Statement of Retained Earnings For the Year Ended December 31 (in thousands of dollars) 2017 2016 2015 S 35,700 Retained Earnings, Beginning of Year Net Income Dividends Retained Earnings, End of Year 9,156 786 786 714