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 company's financial statements for the most recent two years follow: Crowley Building Supply Comparative Balance Sheets This Year Last Year Assets Current assets: Cash 65.000 150,000 Marketable securities 10.000 28.000 493,000 305,000 Accounts receivable, net Inventory 957.400 597.200 Prepaid expenses 28.000 35.000 1,553,400 Total current assets 1.115.200 1,658,620 1,563,580 Plant and equipment, net 3,212,020 2,678,780 Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities 823,000 462,000 625,000 625,000 Bonds payable, 8% 1,448,000 1,087,000 Total liabilities Stockholders' equity: Preferred stock, $25 par 7% 335.000 335.000 527,000 527,000 Common stock, $10 par Retained earnings 902,020 729,780 Total stockholders' equity 1.764.020 1.591.780 3,212,020 2,678,780 Total liabilities and stockholders' Equity