Modern Building Supply sells various building materials to retail outlets. The company has just approached Linden 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 Modern Building Supply Comparative Balance Sheet This Year Last Year Assets Current assets Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses $55,000 $138,000 14,000 465,000 280,000 949,000 588,000 23,000 17,000 Total current assets Plant and equipment, net 1.486.000 1.043.000 1,560,328 1,485,314 Total assets $3,046,328 $2,528,314 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 11% $ 815,000 $ 444,000 606,000 606,000 Total liabilities 1,421,000 1,050,000 Stockholders' equity Preferred stock, $25 par 7% Common stock, $10 par Retained earnings 275,000 506,000 844,328 275,000 506,000 697,314 Total stockholders' equity 1,625,328 1,478,314 Total liabilities and stockholder's equity $3,046,328 $2,528,314