Springfield Bank is evaluating Creek Enterprises, which has
requested a $ 3 comma 870 comma 000$3,870,000 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: .
Debt ratio
0.480.48
Times interest earned ratio
7.307.30
Creek Enterprises Balance Sheet:
