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 resson, it is requesting a S820,000 long-term loan from Gulfport State Bank 5180,000 of which will be used to bolster the Cash sccount and $460,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow: Sabin Electronics Comparstive Balance Sheet his Year Last Year Assets Current assets Cash Marketable securities Accounts receivable, net s 118,000 633,000 1,085.000 30,000 270,000 0,000 420,000 715,000 34,000 Prepaid expenses Total current assets Plant and equipment, net 1,846,000 1,989,200 1.469,000 1.490,000 Total assets 53,815,200 2,959,000 Liabilities and Stockholders Equity Liabilities Current liabilities Bonds payable, 12% 5 820,000 850,00O 420,000 50,000 Total liabilities 1,870,000 1,270,000 Stockholders' equity Common stock, $15 par Retained earnings 810,000 810,000 1,335,200 2,145,200 53,815,200 79,000 1,689,000 2,959,000 Total stockholders' equity Total liabilities and equity