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 63,500 48,500 Marketable securities 8,500 26,500 302,000 490,000 Accounts receivable, net 595,670 Inventory 955,840 Prepaid expenses 26,500 33,500 1,106,170 Total current assets 1,544,340 1,655,620 1,560,580 Plant and equipment, net Total assets 3,199,960 2,666,750 Liabilities and Stockholders' Equity Liabilities: 820,000 459,000 Current liabilities 623,500 623,500 Bonds payable, 8% 1,443,500 1,082,500 Total liabilities Stockholders' equity: 332,000 332,000 Preferred stock, $25 par, 7% Common stock, $10 par 524,000 524,000 728,250 Retained earnings 900,460 1,756,460 Total stockholders' equity 1,584,250 Total liabilities and stockholders' Equity 3,199,960 2,666,750