Explain Financial Ratios

My accountant just sent these over. Can you tell me what the numbers actually mean? We are thinking about taking on a line of credit and I want to know if we are in good shape.

---------- Forwarded message ----------
On Wednesday, October 15, 2025, Sandra Park sandra@parkcpagroup.com wrote:

Hi Tom,

Here are your Q3 statements as requested.

Ridgeway Interiors LLC - Balance Sheet as of Sept 30, 2025
Assets:
  Cash: $42,000
  Accounts Receivable: $118,000
  Inventory: $85,000
  Prepaid Expenses: $12,000
  Total Current Assets: $257,000
  Fixed Assets (net): $165,000
  Total Assets: $422,000

Liabilities:
  Accounts Payable: $67,000
  Short-term Debt: $35,000
  Accrued Expenses: $18,000
  Total Current Liabilities: $120,000
  Long-term Debt: $95,000
  Total Liabilities: $215,000

Equity:
  Owner Equity: $207,000
  Total Liabilities and Equity: $422,000

Income Statement - 9 months ending Sept 30, 2025
  Revenue: $890,000
  Cost of Goods Sold: $534,000
  Gross Profit: $356,000
  Operating Expenses: $278,000
  Operating Income: $78,000
  Interest Expense: $8,200
  Net Income: $69,800

Let me know if you need anything else.

Sandra Park, CPA
Park CPA Group