1. calculate the current ratio and include the financial condition. 2. calculate the working capital and include the financial condition.

Balance Sheet Analysis Assume you are a loan officer for a bank and Frank Farmer requests a loan based on her balance sheet shown below. I would suggest working on another piece of paper and then transferring all of your work to this homework sheet. SHOW ALL WORK, how you calculated each of the ratios and then specify the quality of the ratios. I Steps A. Conduct a ratio analysis given the balance sheet below B. Assess each of the ratios financial condition (Poor/Fair/Good). C. What is the weakest part of this balance sheet? D. Will you grant or deny an additional loan? Give clear reasons as to how and why you made this decision. Assets Current assets: $240,000 Intermediate assets: $200,000 Fixed (long-term) assets: $800,000 Total assets: $1,240,000 Liabilities Current liabilities: $240,000 Intermediate liabilities: $40,000 Long-term liabilities: $160,000 Total liabilities: $440,000 Net worth: $800,000 Total liabilities + net worth = $1,240,000 action 1 11 points)