evaluate and recommend appropriate action on the loan request.

Creek Enterprises Income Statement:

Creek Enterprises Balance Sheet:

Creek Enterprises's debt ratio is $($Round to two decimal places.$)$

Data table

Data table

$($Click the icon here in order to copy the contents of the data table below into a spreadsheet.$)$

Creek Enterprises Balance Sheet December $31,2022$

$*$The firm has a $4-$year lease requiring annual beginning$-$of$-$year payments of $$241,000.$ Three years of the

lease have yet to run.

$**$Required annual principal payments are $$826,000.$

$($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 $31,2022$Debt analysis$$Springfield Bank is evaluating Creek$$ Enterprises, which has requested a $ $4$ comma $490$ comma $000$loan$,$ to assess the$$ firm's financial leverage and financial risk. On the basis of the debt ratios for$$ Creek, along with the industry averages and$$ Creek's recent financial$$ statements, evaluate and recommend appropriate action on the loan request.

Industry averages

Creek Enterprises Income$$ Statement: LOADING...

Debt ratio

$0\mathrm{.}41$

Times interest earned ratio

$7\mathrm{.}21$

Creek Enterprises Balance$$ Sheet: LOADING...

$$Fixed$-$payment coverage ratio

$1\mathrm{.}93$

Question content area bottom

Part $1$

Creek$$ Enterprises's debt ratio is

$$

enter your response here. $($Round to two decimal$$ places.$)$