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 $600,000 long-term loan from Gulfport State Bank, $150,000 of which will be used to bolster the Cash account and $450,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow: Comparative Income Statenent Required: 1. To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year: a. The amount of working capital. b. The cufrent ratio. c. The acid-test ratio. d. The average collection period. (The accounts recelvable at the beginning of last year totaled $350,000 ) e. The average sale period. (The inventory at the beginning of last year totaled $600,000.) f. The operating cycle. 9. The total asset furnover. (The total assets at the beginning of last year were $2.790,000 ) h. The debt-to-equity ratio. 1. The times interest earned ratio, 1. The equity multiplier. (The total stockholders' equity at the beginning of last year totaled $1,715,000 ) 2. For both this year and last yeat: a. Present the balance sheet in cornmon-size format for both this year and last year. b. Present the Income statement in common-size format down through net income for both this youf and last year: 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 $600,000 long-term loan from Gulfport State Bank, $150,000 of which will be used to bolster the Cash account and $450,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow: Comparative Income Statenent Required: 1. To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year: a. The amount of working capital. b. The cufrent ratio. c. The acid-test ratio. d. The average collection period. (The accounts recelvable at the beginning of last year totaled $350,000 ) e. The average sale period. (The inventory at the beginning of last year totaled $600,000.) f. The operating cycle. 9. The total asset furnover. (The total assets at the beginning of last year were $2.790,000 ) h. The debt-to-equity ratio. 1. The times interest earned ratio, 1. The equity multiplier. (The total stockholders' equity at the beginning of last year totaled $1,715,000 ) 2. For both this year and last yeat: a. Present the balance sheet in cornmon-size format for both this year and last year. b. Present the Income statement in common-size format down through net income for both this youf and last year