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(--) ? | ezto.mhe tpx Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured
(--) ? | ezto.mhe tpx 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 a severe cash shortage. For this reason, it is requesting a $670,000 long-term loan from Gulfport State Bank $185,000 of which will be used to bolster the Cash account and $485,000 of which will be used to modernize equipment The company's financial statements for the two most recent years follow: Comparative Balance Sheet Assets Current assets: Cash S 133,000320,000 14,000 470,000 765,000 39,000 698,000 1,115,000 34,000 Accounts receivable, net Inventory Prepaid expenses 1,608,000 2,015,600 1,380,000 Total current assets 1,980,000 Plant and equipment, net Total assets Liabilities and Stockholders Equity $3,995.600 $2,988,000 Liabilities Current liabilities Bonds payable, 12% 885,000 470,000 750,000 750,000 1,635,000 220,000 Total liabilities Stockholders equity 780,000 1,580,600 780,000 Common stock, $15 par Retained earnings 988 000 2.360,600 1.768,000 $3 995,600 $2,988.000 Total stockholders' equity Total liabilities and equity
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