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 $680,000 long-term loan from Gulfport State Bank, $190,000 of which will be used to bolster the Cash account and $490,000 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: 135,000 330,000 Cash Marketable securities 15,000 Accounts receivable, net 711,000 480,000 1,125,000 775,000 Inventory Prepaid expenses 38,000 40,000 2,009,000 1,640,000 Total current assets 1,550,000 Plant and equipment, net 2,245,000 $4,254,000 3,190,000 Total assets Liabilities and Stockholders Equity Liabilities 850,000 400,000 Current liabilities Bonds payable, 12% 800,000 00,000 1,650,000 1,200,000 Total liabilities Stockholders' equity Common stock, $15 par Retained earnings 870,000 870,000 1,734,000 1,120,000 Total stockholders' equity 2,604,000 1,990,000 $4,254,000 3,190,000 Total liabilities and equity