Springfield Bank is evaluating Creek Enterprises, which has requested a

$ 4 comma 190 comma 000$4,190,000

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	0.430.43
Times interest earned ratio	7.437.43		Creek Enterprises Balance Sheet: LOADING...
Fixed-payment coverage ratio	2.09

i just need the first three answers

Save Homework: Homework ch3 Score: 0.29 of 1 pt & P3-16 (similar to) 4 of 8 (8 complete) HW Score: 88.39%, 7.07 of 8 pts Question Help Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4.190,000 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. Creek Enterprises Income Statement: Industry averages Debt ratio Times Interest eamed ratio Fixed-payment coverage ratio 0.43 7.43 2.09 Creek Enterprises Balance Sheet: E i Data Table -X Creek Enterprises's debt ratio is 0.71. (Round to two decimal places.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadshoot.) i Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $30,043,000 Less: Cost of goods sold 20.979.000 Gross profits 59,064,000 Less: Operating expenses Selling expense S2,977,000 General and administrative expenses 1.806.000 Lease expense 161,000 Depreciation expense 967 000 Total operating expense 5.911.000 Operating profits $3,153,000 Less: Interest expense 1,023,000 Net profits before taxes 52.130,000 Less: Taxes (rate=21%) 447,300 Net profits after taxes S1,682.700 Less: Preferred stock dividends 98.400 Earnings available for common stockholders $1,584,300 Creek Enterprises Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Current assets Current liabilities Cash 5989,000 Accounts payable $7,990,000 Marketable securities 2,965,000 Notes payable 8,034,000 Accounts receivable 11,963,000 Accruals 532,000 Inventories 7,496,000 Total current liabilities S16,556,000 Total current assets $23,413,000 Long-ter debt (includes financial leases) S18,811,500 Gross fixed assets (at cost)* Stockholders' equity Land and buildings $10.991,000 Preferred stock (24,600 shares, S4.00 dividend) $2,478,000 Machinery and equipment 20,525,000 Common stock (1.17 million Furniture and fixtures 8,030,000 shares at $5.25 par) 6,142,500 Gross fixed assets $39,546,000 Paid-in capital in excess of par valus 4,002,000 Less: Accumulated depreciation 12,973,000 Retained earnings 1,996,000 Net fixed assets $26,573,000 Total stockholders' equity S14,618,500 Tolal liabilities and Total assets $49,986,000 stockholders' equity $49,986,000 *The firm has a 4-year financial lease requiring annual beginning-of-year payments of $161,000. Three years of the lease have yet to run. "Required annual principal payments are $803,000. Creek Enterprises's debt ratio is (Round to two decimal places.) Creek Enterprises's times interest earned ratio is (Round to two decimal places.) Creek Enterprises's fixed-payment coverage ratio is (Round to two decimal places.) Complete the following summary of ratios and compare Creek Enterprises's ratios vs. the industry average: (Round to two decimal places.) Creek Industry Debt ratio Times interest earned ratio Fixed-payment coverage ratio Do you agree or disagree with the decision below? Because Creek Enterprises has a much higher degree of indebtedness and much lower ability to service debt than the average firm in the industry, the loan should be rejected. . (Select from the drop-down menu.) Save Homework: Homework ch3 Score: 0.29 of 1 pt & P3-16 (similar to) 4 of 8 (8 complete) HW Score: 88.39%, 7.07 of 8 pts Question Help Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4.190,000 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. Creek Enterprises Income Statement: Industry averages Debt ratio Times Interest eamed ratio Fixed-payment coverage ratio 0.43 7.43 2.09 Creek Enterprises Balance Sheet: E i Data Table -X Creek Enterprises's debt ratio is 0.71. (Round to two decimal places.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadshoot.) i Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $30,043,000 Less: Cost of goods sold 20.979.000 Gross profits 59,064,000 Less: Operating expenses Selling expense S2,977,000 General and administrative expenses 1.806.000 Lease expense 161,000 Depreciation expense 967 000 Total operating expense 5.911.000 Operating profits $3,153,000 Less: Interest expense 1,023,000 Net profits before taxes 52.130,000 Less: Taxes (rate=21%) 447,300 Net profits after taxes S1,682.700 Less: Preferred stock dividends 98.400 Earnings available for common stockholders $1,584,300 Creek Enterprises Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Current assets Current liabilities Cash 5989,000 Accounts payable $7,990,000 Marketable securities 2,965,000 Notes payable 8,034,000 Accounts receivable 11,963,000 Accruals 532,000 Inventories 7,496,000 Total current liabilities S16,556,000 Total current assets $23,413,000 Long-ter debt (includes financial leases) S18,811,500 Gross fixed assets (at cost)* Stockholders' equity Land and buildings $10.991,000 Preferred stock (24,600 shares, S4.00 dividend) $2,478,000 Machinery and equipment 20,525,000 Common stock (1.17 million Furniture and fixtures 8,030,000 shares at $5.25 par) 6,142,500 Gross fixed assets $39,546,000 Paid-in capital in excess of par valus 4,002,000 Less: Accumulated depreciation 12,973,000 Retained earnings 1,996,000 Net fixed assets $26,573,000 Total stockholders' equity S14,618,500 Tolal liabilities and Total assets $49,986,000 stockholders' equity $49,986,000 *The firm has a 4-year financial lease requiring annual beginning-of-year payments of $161,000. Three years of the lease have yet to run. "Required annual principal payments are $803,000. Creek Enterprises's debt ratio is (Round to two decimal places.) Creek Enterprises's times interest earned ratio is (Round to two decimal places.) Creek Enterprises's fixed-payment coverage ratio is (Round to two decimal places.) Complete the following summary of ratios and compare Creek Enterprises's ratios vs. the industry average: (Round to two decimal places.) Creek Industry Debt ratio Times interest earned ratio Fixed-payment coverage ratio Do you agree or disagree with the decision below? Because Creek Enterprises has a much higher degree of indebtedness and much lower ability to service debt than the average firm in the industry, the loan should be rejected. . (Select from the drop-down menu.)