Kris Building Supply sells various building materials to retail outlets. The company has just approached Kingston 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: Kris Building Supply Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses 6,000 476,000 950,720 22,000 $ 64,000 143,000 20,000 303,000 591,360 31,000 Total current assets 1,518,720 1,652,410 1,088,360 1,509,555 Plant and equipment, net Total assets $ 3,171,574 2,598,137 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 9% $ 827,000 626,000 445,000 626,000 Total liabilities 1,453,000 1,071,000 Stockholders' equity: Preferred stock, $25 par, 7% Common stock, $10 par Retained earnings 289,500 516,000 913,074 289,500 516,000 721,637 Total stockholders' equity 1,718,574 1,527,137 Total liabilities and stockholder's Equity 3,171,574 2,598,137