Based on the following information, make a decision whether the company is a good candidate for a loan. And make two suggestions for the company.

COMMON SIZE INCOME STATEMENT
				2012-2013	2013-2014	2014-2015
				B	W	D
	Sales			100	100.00%	100
	Cost of Goods Sold			62%	59.00%	60.00%
	Gross Profit			38%	41.00%	40.00%
	Operating Expenses:
	General, administration, and selling expenses			4%	9.00%	12.50%
	Depreciation			5%	8.30%	8.25%
	Interest expense (on borrowings)			3%	3.20%	4.25%
	Profit before tax (PBT)			26%	20.00%	15.00%
	Tax @ 30%			7.80%	6.00%	4.50%
	Profit after tax (net income)			18.20%	14.00%	10.50%

TREND ANALYSIS OF INCOME STATEMENT %				2012-2013	2013-2014	2014-2015
	Sales			100	240	400
	Cost of Goods Sold			100	228	387
	Gross Profit			100	259	421
	Operating Expenses:
	General, administration, and selling expenses			100	563	1250
	Depreciation			100	400	660
	Interest expense (on borrowings)			100	263	567
	Profit before tax (PBT)			100	185	231
	Tax @ 30%			100	185	231
	Profit after tax (net income)			100	185	231

LIQUIDITY
	Working Capital	Current Assets - Current Liabilities		400	1372	1676
2:30 to 1	Current Ratio	Current Assets / Current Liabilities		2.54	1.79	1.60
1:20 to 1	Acid-test Ratio	Quick Assets / Current Liabilities		1.31	0.92	0.79
		QA = Cash + AR + Marketable Securities
	Inventory Turnover
	Accounts Receivable Turnover
	Debt to Equity	Total Liabilities / Total Equity		0.64	1.12	1.36
		Long-Term Liabilities/Total Equity		0.47	0.47	0.64
	Return on equity	Net income / Shareholders' Equity		0.23	25.49%	21.67%