Sun- Rype Products Ltd. manufactures and markets a variety of fruit juices and fruit snacks, such as Fruit to Go, Squiggles, and FruitSource snack bars. Its products are sold in grocery stores, wholesalers, and drug stores. The following information was reported in a recent annual report:
SUN-RYPE PRODUCTS LTD.
Consolidated Statement of Comprehensive Income
For the years ended December 31
(in thousands of Canadian dollars, unless otherwise stated)

SUN-RYPE PRODUCTS LTD.
Consolidated Statement of Financial Position
(in thousands of Canadian dollars)

Additional information related to 2010 at year- end is as follows:
Shareholders€™ equity ..............$ 52,119
Total assets .................82,318
Property, plant, and equipment ..........39,719
Trade and other receivables ............14,260
Inventories .................24,961
Trade and other payables ............18,061
The market price per share was $ 6.23 at December 31, 2011, and $ 6.10 at December 31, 2012.
Required:
1. For Sun- Rype€™s past two years, compute the ratios discussed in this chapter. If there is insufficient information, describe what is missing and explain what you would do.
2. Assume that you work in the loan department of City Bank, and you are evaluating an application from Sun-Rype for a two- year loan of $ 10 million to purchase the shares of another competing company. What specific ratios would you consider in your evaluation, and would you lend Sun-Rype the requested amount?

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2012 2011 $152,795 (125474) 27,321 (11,699) (6,813) (5,987) $147,529 (126,311) 21,218 $(14,721) (7,352) (6,410) (57) 322 714 (8,036) 2,349 (5,687) Net sales (Note 15) Cost of sales (Note 6) Gross profit Sales and marketing expenses Distribution expenses General and administrative expenses Loss on disposal of property, plant, and equipment Results from operating activities Income (loss) before income taxes Net income (loss) for the year 2,822 708) 2,114 847 1,267 Finance costs (Note 17) Income tax recovery (expense) Other comprehensive income (loss) Foreign currency translation differences for foreign operations (53) Total comprehensive income (loss) for the year S 1.254 Basic and diluted earnings (loss) per share (Note 14) (in dollars) December 31 2012 December 3 2011 Assets Current assets Cash Trade and other receivables (Note 5) Income taxes recoverable Inventories (Note 6) Prepaid expenses S 4,227 14,047 446 29,149 13,672 2,244 31.794 579 48,860 Total current assets Non-current assets 48,371 Property, plant, and equipment (Note 7) Goodwill (Note 8) Total non-current assets Total assets Liabilities Current liabilities 42,041 1,061 43.102 91.473 46,195 1,084 47.279 96,139 25,672 1,687 Trade and other payables (Note 9) Provisions (Note 10) Income taxes payable Loans and borrowings (Note 11) 19,479 1,297 12.926 Total current liabilities Non-current liabilities Loans and borrowings (Note 11) Deferred tax liabilities (Note 12) 8,781 12,636 Total non-current liabilities Total liabilities 12,816 43,937 16,058 49,760 Share capital (Note 13) Contributed surplus Retained earnings Accumulated other comprehensive loss 17,697 724 29,181 17,724 794 27,914 Total equity Total liabilities and equity (66) 47,536 $91,473 46,379 $96,139 SUN-RYPE PRODUCTS LTD Consolidated Statement of Cash Flows For the Years ended December 31 in thousands of Canadian dollars) 2012 2011 Cash Flows from Operating Activities Net income (loss) for the year Adjustments for: 1,267 (5,687) 5,166 164 Depreciation Impairment loss Loss on disposal of property, plant, and equipment Unrealized foreign exchange loss (gain) Interest expense Income tax expense (recovery) 4,745 293 57 (552) 608 2.349 (2,885) 69 847 8,339