Crowley Building Supply sells various building materials to retail outlets. The company has just approached Sycamore State Bank requesting a $300,000 loan to strengthen the Cash account and to pay certain pressing short-term obligations. The companys financial statements for the most recent two years follow

Crowley Building Supply Comparative Income Statement and Reconciliation This Year Last Year 5,029,000 4,371,000 Sales Cost of goods sold 3,439,800 3,875,800 931,200 1,153,200 Gross margin 653,700 534,700 Selling and administrative expenses Net operating income 396,500 499,500 Interest expense 49,480 49,480 347,020 Net income before taxes 450,020 Income taxes (35%) 157,507 121,457 225,563 Net income 292,513 Dividends paid: Preferred dividends 22,540 22,540 Common dividends 97,863 62,373 120,403 Total dividends paid 84,913 Net income retained 172,110 140,650 Retained earnings, beginning of year 723,150 582.500 895,260 723.150 Retained earnings, end of year During the past year, the company has expanded the number of lines that it carries in order to stimulate sales and increase profits. It has also moved aggressively to acquire new customers. Sales terms are 2/10, n/2n All sales are on arcp nt