Debt analysis Springfield Bank is evaluating Crook Enterprises, which has requested a $3 580,000 loan, to miss the firm's financial leverage and financial risk On the basis of the debt ratios for Crook, along with the industry averages and Crook's recent financial statements, evaluate and recommend appropriate action on the loan request Industry averages Crook Enterprises Income Statement Debt ratio 0.52 Times interest and ratio 718 Crook Enterprises Balance Sheet Fixed payment coverage ratio 105 Crook Enterprises's debt ratio is (Round to two decimal places) (Click the icon here in order to copy the contents of the data table below into a spreadsheet) Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $30 023,000 Less Cost of goods sold 21.035 000 Gross profits $8,988,000 Less Operating expenses Selling expense $3,001,000 General and administrative expenses 1,840,000 Lease expense 209,000 Depreciation expense 1,040,000 Total operating expense 6,090,000 Operating profits $2 898 000 Less Interest expense 1,036,000 Net profits before taxes $1,862,000 Less Taxes (rate=21%) 391,020 Net profits after taxes $1,470,980 Less Preferred stock dividends 101,200 Earnings available for common stockholders $1369,780 Print Done Creek Enterprises Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Current assets Current liabilities Cash $1,015,000 Accounts payable $7951,000 Marketable securities 3,050,000 Notes payable 8,036.000 Accounts receivable 12,047,000 Accruals 458,000 Inventories 7,528,000 Total current liabilities $16.445.000 Total current assets $23,640,000 Long-term debt (includes financial leases)" $20 328,500 Gross fixed assets (at cost) Stockholders' equity Land and buildings $11,011,000 Preferred stock (25,300 shares, $400 dividend) $2.499.000 Machinery and equipment 20,459,000 Common stock (1 01 million Furniture and fixtures 7,971,000 shares at $4.75 par) 4.797,500 Gross fixed assets $39.441,000 Paid-in capital in excess of par value 4,000,000 Less Accumulated depreciation 12,971,000 Retained earnings 2,040,000 Net fixed assets $26,470,000 Total stockholders' equity $13,336,500 Total liabilities and Total assets $50, 110,000 stockholders' equity $50,110,000 "The firm has a 4 year financial lease requiring annual beginning-of-year payments of $209,000 Three years of the lease have yet to run **Required annual principal payments are $792,000