What is T.P. Jarmon's current ratio?

(Financial statement analysis) The T. P. Jarmon Company manufactures and sells a line of exclusive sportswear. The firm's sales were $599,900 for the year just ended, and its total assets exceeded $500,000. The company was started by Mr. Jarmon just 10 years ago and has been profitable every year since its inception. The chief financial officer for the firm, Brent Vehlim, has decided to seek a line of credit from the firm's bank totaling $86,000. In the past, the company has relied on its suppliers to finance a large part of its needs for inventory. However, in recent months tight money conditions have led the firm's suppliers to offer sizable cash discounts to speed up payments for purchases. Mr. Vehlim wants to use the line of credit to supplant a large portion of the firm's payables during the summer, which is the firm's peak seasonal sales period. The firm's two most recent balance sheets were presented to the bank in support of its loan request. In addition, the firm's income statement for the year just ended was provided. These statements are found in the following tables: Jan Fama, associate credit analyst for the Merchants National Bank of Midland, Michigan, was assigned the task of analyzing Jarmon's loan request. a. Calculate the following financial ratios for 2013: ... provided. These statements are found in the following tables: assigned the task of analyzing Jarmon's loan request. Jan Fama, associate credit analyst for the Merchants National Bank of Midland, Michigan, was a. Calculate the following financial ratios for 2013: b. Which of the ratios calculated in part (a) do you think should be most crucial in determining whether the bank should extend the line of credit? c. Use the information provided by the financial ratios and industry-norm ratios to decide if you would support making the loan. Discuss the basis for your recommendation. T. P. Jarmon Company Balance Sheets Cash Marketable securities Accounts receivable Inventory Prepaid rent Total current assets Net plant and equipment 2012 $15,100 5,990 41,900 50,900 1,210 $115,100 286,100 2013 $14,100 6,190 33,100 83,900 1,090 $138,380 270,000 Net plant and equipment Total assets Accounts payable Notes payable Accruals Total current liabilities Long-term debt mtaal.boldowal A 286,100 $401,200 2012 $47,900 15,000 6,000 $68,900 160,000 170 000 270,000 $408,380 2013 $56,900 13,000 5,000 $74,900 150,000 100 100 Long-term debt Common stockholders' equity Total liabilities and owners' equity 160,000 172,300 $401,200 on the icon in order to copy its contents into a spreadsheet.) T. P. Jarmon Company Income Statement for 2013 Sales (all credit) Less: Cost of goods sold 150,000 183,480 $408,380 $599,900 (459,900) Sales (all credit) Less: Cost of goods sold Gross profit Less: Operating and interest expenses General and administrative Interest Depreciation Total Earnings before taxes Less Taxes $(30,000) (10,000) (30,000) $599,900 (459,900) $140,000 $(70,000) $70,000 (27 100) Interest Depreciation (10,000) (30,000) Total Earnings before taxes Less: Taxes Net income available to common stockholders Less: Cash dividends Change in retained earnings ck on the icon in order to copy its contents into a spreadsheet) $(70,000) $70,000 (27,100) $42,900 (31,800) $11,100