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 $540,000 long-term loan from Gulfport State Bank modernize equipment. The company's financial statements for the two most recent years follow Sabin Electronics Comparative Balance Sheet This YearLast Year Assets Current assets: Cash Marketable securities Accounts receivable, net $ 86,000 190,000 22,000 340,000 635,000 26,000 529,000 960,000 22,000 Prepaid expenses Total current assets Plant and equipment, net 1,213,000 1,631,600 410,000 1,597,000 Total assets $3,228,600 $2,623,000 Liabilities and Stockholders Equity Liabilities: Current liabilities Bonds payable, 12% $820,000 470,000 ,620,000 1,270,000 730,000 800,000 800,000 Total liablaties Stockholders' equity Common stock, $20 par Retained eanings 730,000 878,600 623,000 Total stockholders' equity 1,608,600 1,353,000 Total liabiities and equity $3,228,600 2,623,000 Sabin Electronics This Year $5,200,000 Last Year 4,470,000 esc 0 FI F2 F5 2 4