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 $630,000 long-term loan from Gulfport State Bank, $165,000 of which will be used to bolster the Cash account and $465,000 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 Assets Current assets: 119,000 280,000 Cash Marketable securities 0,000 Accounts receivable, net 640,000 430,000 1,075,000 725,000 Inventory Prepaid expenses 30,000 35,000 1,864,000 1,480,000 Total current assets 1,933,600 1,460,000 Plant and equipment, net $3,797,600 2,940,000 Total assets Liabilities and Stockholders Equity Liabilities: Current liabilities 810,000 430,000 Bonds payable, 12% 00,000 00,000 1,710,000 1,330,000 Total liabilities Stockholders' equity: 660,000 660,000 1,427,600 950,000 Common stock, $15 par Retained earnings Total stockholders' equity 2,087,600 1,610,000 $3,797,600 2,940,000 Total liabilities and equity