10.00 points Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now experiencing severe cash shortage. For this reason, it is requesting a $620,000 long-term loan from Gulfport State Bank, $160,000 of which will be used to bolster the Cash account and $460,000 of which will be used to modemize equipment. The financial statements for the two mostrecent years follow: Sabin Electronics Comparative Balance Sheet This Year Last Year Current assets: 118,000 270,000 30,000 Accounts receivable, net 633,000 420,000 1,065,000 715,000 Prepaid expenses 34,000 Total current assets 1,846,000 1,469,000 Plant and equipment, net 1,969,200 1,490,000 Total assets $3,815,200 2,959,000 uabilities and Stockholders Equity Current liabilities 820,000 420,000 Bonds payable, 12% 850,000 1,670,000 1,270,000 Stockholders' equity: Common stock, $15 par 630,000 Retained earnings 1.515.200 1.059.000 Total stockholders' equity 2,145,200 1,689,000 Total liabilities and equity $3,815,200 2.959,000 Sabin E Comparative Income Statement and Reconciliation This Year $5.600.000 4,710,000