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:During the past year, the company introduced several new products and raised the selling prices on

a number of existing products to improve its profit margin. The company also hired a new sales

manager, who expanded sales into several new territories. Sales terms are $\frac{2}{10},\frac{n}{30}.$ All sales are

on account.

To assist in approaching the bank about the loan, Paul asked you to compute the following

ratios for both this year and last year:

a$.$ The amount of working capital.

b$.$ The current ratio.

c$.$ The acid$-$test ratio.

d$.$ The average collection period. $($The accounts receivable at the beginning of last year

totaled $$250,000.)$

e$.$ The average sale period $($The inventory at the beginning of last year totaled

$$500,000.)$

f$.$ The operating cycle.

g$.$ The total asset turnover. $($The total assets at the beginning of last year were

$$2,420,000.)$

h$.$ The debt$-$to$-$equity ratio.

i$.$ The times interest earned ratio.

j$.$ The equity multiplier. $($The total stockholders' equity at the beginning of last year

totaled $$1,420,000.)$

Include your calculations and answers in Part $2$Q$1$ of the Final Project excel spreadsheet

For both this year and last year:a$.$ Present the balance sheet in common$-$size format for both this year and last year.

Include your calculations and answers in Part $2$ Q$2$A of the Final Project excel

spreadsheet.

b$.$ Present the income statement in common$-$size format down through net income for

both this year and last year. Include your calculations and answers in Part $2$ Q$2$B of

the Final Project excel spreadsheet.

Based on your analyses, what is your assessment of the financial position of Sabin

Electronics? What is the likelihood of Sabin Electronics receiving a $$500,000$ long$-$term loan from

Gulfport State Bank? Be sure to include the metrics that you are using as a basis for your

assessment. Include your responses in Part $2$ Q$3$ of the Final Project excel spreadsheet.Review the assignment instructions and complete the shaded area below.