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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

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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, $120,000 of which will be used to bolster the Cash account and $420,000 of which will be used to 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 1,597,000 1,213,000 ,631,600 1,410,000 Total assets $3,228,600 2,623,000 Liabilities and Stockholders Equity Current iablities Bonds payable, 12% 820,000 470,000 800,000 800,000 Total liabilities 1,620,000 1,270,000 Stockholders' equity Common stock, $15 par Retained eamings 810,000 810,000 543,000 1,608,600 1,353,000 3.228,600 2,623,000 Total stockholders equity Total liabilities and equity Sabin Electronics This Year Last Year $5,200,000 $4,470,000 8 2 3 5 6 9 WERT

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