Last Year 0.0 Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patent Sabin Electronics Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $520,000 long-term loan from Gulfport State Bank, $110,000 of which will be used to bolster the Cash account and $410,000 of whi Common-Size Balance Sheets will be used to modernize equipment. The company's financial statements for the two most recent years follow: This Year Sabin Electronics Comparative Balance Sheet Assets This Year Last Year Assets Current assets: Current assets: Cash $ 78,000 $ 170,000 Cash Marketable securities 20,000 Accounts receivable, net 503,000 320,000 Inventory 965,000 615,000 Marketable securities Prepaid expenses 22,000 24,000 Total current assets 1.568.000 1,149,000 Accounts receivable, net Plant and equipment, net 1,503,800 1.350,000 Total assets $ 3,071, 800 $2,499,000 Inventory Liabilities and Stockholders Equity Liabilities: Prepaid expenses Current liabilities $ 820,000 $ 450,000 Bonds payable, 12% 700.000 700.000 Total current assets 0.0 Total liabilities 1,510,000 1,150,000 Stockholders' equity: Plant and equipment, net Common stock, $15 par 710,000 710,000 Retained earnings 851,800 639,000 Total assets 0.0 % Total stockholders' equity 1.561, 800 1 , 349,000 Total liabilities and stockholders' equity $ 3,071,800 $2,499,000 Liabilities and Stockholders' Equity Liabilities: Sabin Electronics Comparative Income Statement and Reconciliation Current liabilities This Year Last Year Sales $ 5,100,000 $4.410.000 Bonds payable, 12% Cost of goods sold 3,895,000 3,470,000 Gross margin 1, 205,000 940,000 Total liabilities Selling and administrative expenses 657,000 552,000 Net operating income 548.000 388,000 Interest expense 84.000 84.000 Stockholders' equity: Net income before taxes 464.000 304,000 Income taxes (30%) 139,200 91,200 Common stock, $15 par Nee income 324.800 212,800 Common dividends 112.000 91.000 Retained earnings Net income retained 212,800 121,800 Beginning retained earnings 639,000 517,200 Total stockholders' equity 0.0 Ending retained earnings 951,800 $ 639,000 Total liabilities and equity 0.0 % 0.0 % Present the income statement in common-size format down through net income. (Round your answers to 1 decimal place.) Last Year 0.0 Sabin Electronics Common-Size Income Statements This Year Sales Cost of goods sold Gross margin 0.0 Selling and administrative expenses Net operating income 0.0 Interest expense Net income before taxes 0.0 Income taxes Net income 0.0% 0.0 0.0 0.0 0.0 % 0.0%