Paul Sabin organized Sabin Electronics $10$ years ago to produce and sell several electronic devices. Due to a cash shortage, the company is requesting a $$500,000$ long$-$term loan from Gulfport State Bank. The company$$s financial statements for the two most recent years follow:

Sabin Electronics

Comparative Balance Sheet

This Year Last Year

Assets

Current assets:

Cash $ $70,000$ $ $150,000$

Marketable securities $018,000$

Accounts receivable, net $480,000300,000$

Inventory $950,000600,000$

Prepaid expenses $20,00022,000$

Total current assets $1,520,0001,090,000$

Plant and equipment, net $1,480,0001,370,000$

Total assets $ $3,000,000$ $ $2,460,000$

Liabilities and Stockholders$$ Equity

Liabilities:

Current liabilities $ $800,000$ $ $430,000$

Bonds payable, $12\%600,000600,000$

Total liabilities $1,400,0001,030,000$

Stockholders' equity:

Common stock, $ $15$ par $750,000750,000$

Retained earnings $850,000680,000$

Total stockholders$$ equity $1,600,0001,430,000$

Total liabilities and stockholders$$ equity $ $3,000,000$ $ $2,460,000$