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 $670,000 long-term loan from Gulfport State Bank, $185,000 of which will be used to bolster the Cash account and $485,000 of which will be used to modenize equipment. The company's financial statements for the two most recent years follow Sabin Electronics Comparative Balancehis Year This YearLast Year Assets Current assets: Cash Marketable securities Accounts receivable, net s 133,000 S 320poo 14,000 470,000 765,000 39,000 698,000 1,115,000 34,000 Prepaid expenses 1,980,000 Total current assets Plant and equipment, net 1,380,000 2.015,600 1.608 Total assets $3,995,600 2,988,000 Liabilities and Stockholders Equity Liabilities: Current liabilities Bonds payable, 12% s 885,000 470,000 750,000 750,000 Total liabilities 1,635,000 1,220,000 Stockholders' equity: 780,000 1,580,600 Common stock, $15 par 780,000 988,000 2,360,600 1,768,000 $3,995,600 $ 2,988,000 Retained earnings Total stockholders' equity Total liabilities and equity