The sole trader of the Murphy Ltd has approached you for a loan. You note that the closing cash balances for the last two years were $12 000 and $15 000 respectively. Murphy Ltd also took out a loan of $25 000 for the current year, and sold plant worth $60 000 over the past two years. The cash from operating activities last year was negative $34 000, and in the preceding year was $5000. Indicate whether you would advance the loan. Give reasons.