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 s severe cash shortage. For this reason, it is requesting a $890,000 long-term loan from Gulfport State Bank, 5195,000 of which will be used to bolster the Cesh account and $495,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow: Sabin Electronics Comperative Balance Sheet This Year Last Year Assets Current assets $ 146,000 340,000 Marketable securities Accounts receivable, net 16,000 724,000 1,135,000 490,000 41,000 1,672,000 Prepaid expenses Total current assets Plant and equipment, net 2,043,000 2,229,400 1,480,000 Total assets $4,272,400 S 3,152,000 Liabilities and Stockholders Equity Lisbilities 410,000 Current lisbilities Bonds payable, 12% S 895,00O 850,000 Total lisbilities 1,745,000 1,280,000 Stockholders' equity: Common stock, 515 par Retained eamings 840,000 1,687,400 840,000 1,052,000 1,892,000 $4,272,400 S 3,152,000 Total stockholders' equity 2,527,400 Total lisbilities and equity