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 $520,000 long-term loan from Gulfport State Bank, $110,000 of which will be used to bolster the Cash account and $410,000 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 Year Last Year ok Assets Current assets: rices Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 12% Total liabilities Stockholders equity: Common stock, $15 par Retained earnings. Total stockholders' equity Total liabilities and stockholders' equity $ 78,000 0 $ 170,000 20,000 503,000 320,000 965,000 22,000 1,568,000 1,503,800 $ 3,071,800 $ 810,000 700,000 1,510,000 710,000 851,800 1,561,800 $ 3,071,800 615,000 24,000 1,149,000 1,350,000 $ 2,499,000 $ 450,000 700,000 1,150,000 710,000 639,000 1,349,000 $ 2,499,000 Sales Sabin Electronics Comparative Income Statement and Reconciliation Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings This Year $ 5,100,000 3,895,000 1,205,000 657,000 548,000 Last Year $ 4,410,000 3,470,000 940,000 552,000 388,000 84,000 84,000 464,000 304,000 139,200 91,200 324,800 212,800 112,000 91,000 212,800 121,800 639,000 517,200 $ 851,800 $ 639,000 This Year Last Year eBook a. Working capital Print b. Current ratio c. Acid-test ratio + ferences d. Average collection period days days e. Average sale period days days of Operating cycle days days g. Total asset turnover h. Debt-to-equity ratio iTimes interest earned ratio Equity multiplier Req 2A >