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May someone please help me with these last six questions, i really want to study each question before my finals tomorrow. Thank you in advance.
May someone please help me with these last six questions, i really want to study each question before my finals tomorrow. Thank you in advance.
value: 10.00 points 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 $550,000 long-term loan from Gulfport State Bank, $125,000 of which will be used to bolster the Cash account and $425,000 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 $ 90,000 $ 200,000 23,000 350,000 645,000 27,000 0 542,000 995,000 22,000 Total current assets Plant and equipment, net 1,649,000 1,638,000 1,245,000 1,420,000 Total assets $3,287,000 2,665,000 Liabilities and Stockholders Equity Liabilities Current liabilities Bonds payable, 12% $825,000 $ 480,000 850,000 850,000 Total liabilities 1,675,000 1,330,000 Stockholders' equity: Common stock, $15 par Retained earnings 840,000 772,000 840,000 495,000 1,335,000 $3,287,000 2,665,000 Total stockholders' equity 1,612,000 Total liabilities and equityStep by Step Solution
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