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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

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:

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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 Balance Sheets This Year Last Year Assets Current assets: Cash 58,500 143.500 Marketable securities 3,500 21,500 292,000 Accounts receivable, net 480,000 590,570 Inventory 950,640 Prepaid expenses 21,500 28,500 1,514,140 1,076,070 Total current assets Plant and equipment, net 1,645,620 1,550,580 3,159,760 2,626,650 Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities 810,000 449,000 618,500 Bonds payable, 8% 618,500 1,428,500 1,067,500 Total liabilities Stockholders' equity 322,000 Preferred stock, $25 par, 7% 322,000 Common stock, $10 par 514,000 514,000 723,150 Retained earnings 895,260 1,731,260 Total stockholders' equity 1,559,150 3,159,760 2,626,650 Total liabilities and stockholders' Equity

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