Villegas Company is considering applying for a bank loan. Various data from Villegas's classified financial statements follow.

Villegas Company is considering applying for a bank

loan. Various data from Villegas's classified financial statements follow.

2014 2013

Current assets $100,000 $ 85,000

Total assets 440,000 355,000

Current liabilities 45,000 25,000

Long-term liabilities 75,000 25,000

Owner's equity 320,000 305,000

Sales 600,000 525,000

Net income 30,000 40,000

Its total assets and owner's equity at the beginning of 2013 were $345,000 and

$295,000, respectively.

1. Use (a) liquidity analysis and (b) profitability analysis to document Villegas's

financial

position. (Round to two decimal places.)

2. Discuss Villegas's profitability and liquidity. Do you think it will qualify for a bank

loan?