Kate is very pleased with the results of the first year of operations for Kate's Cards. She ended the year on a high note, with the company's reputation for producing quality cards leading to more business than she can currently manage. Kate is considering expanding and bringing in several employees. In order to do this, she will need to find a larger location and purchase more equipment. All this means additional financing. Kate has asked you to look at her year-end financial statements as if you were a banker considering giving Kate a loan. Comment on your findings and provide calculations to support your comments. KATE'S CARDS Balance Sheet August 31 Assets Current assets Accounts receivable Inventory. Prepaid insurance. Total current assets Equipment . Accumulated depreciation Total assets. 11,00016,0001,00045,40017,5003,250$59,650 Liabilities Current liabilities Accounts payable. Unearned revenue. Other current liabilities Total current liabilities. Note payable. Total liabilities Stockholders' equity Additional paid-in-capital Preferred stock. . Retained earnings Total stockholders' equity Total liabilities and stockholders' equity and $2 per share on the common shares