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I don't know what i'm doing wrong with these questions. I need help Paul Sabin organized Sabin Electronics 10 years ago to produce and sell
I don't know what i'm doing wrong with these questions. I need help
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 $640,000 long-term loan from Gulfport State Bank, $170,000 of which will be used to bolster the Cash account and $470,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow: Sabin Electronics Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses $ 126,000 $290,000 11,000 440,000 735,000 36,000 659,000 1,020,000 34,000 Total current assets Plant and equipment, net 1,839,000 2,084,600 1,512,000 1,470,000 Total assets $3,923,600 2,982,000 Liabilities and Stockholders Equity Liabilities Current liabilities Bonds payable, 12% $870,000 $ 440,000 800,000 800,000 Total liabilities 1,670,000 1,240,000 Stockholders' equity: Common stock, $20 par Retained earnings 830,000 1,423,600 830,000 912,000 1,742,000 $3,923,600 2,982,000 Total stockholders' equity 2,253,600 Total liabilities and equityStep by Step Solution
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