Paul Sabun organized Sabin Electronic years ago to produce and several electronic devices on which he had secured parts Although the company has been fairly profitable. It is now experiencing a severe cash shortage. For this reason requestinga $520000 long-term loan from Gulfport State Bank, ST10.000 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 in Electronics Last Yes L ities and Stoholders pity Total s e equity 1.013,000 Cowgative e rent Recon c ion 2. For both this year and last year a. Present the balance sheet in common-size format. During the past year, the company introduced several new products and raised the sing prices on a number of old product lines b. Present the income statement in common-size format down through net income. in order to improve to profit margin. The company also hired a new sales manager, who has expanded sales into several new territories Sales terms are 2/10, 1/30. All sales are on account Sabin Electronics Common Size Balance Sheets This Year Last Year Assets Current assets Cash 0.0 % Last Year 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, S15 par Retained earnings Total stockholders' equity Total liabilities and equity 0.0 Sabin Electronics Common-Size Income Statements This Year Sales Cost of goods sold Gross margin 00 Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income 0.0 0.0 001 0.0% 0.0% Paul Sabun organized Sabin Electronic years ago to produce and several electronic devices on which he had secured parts Although the company has been fairly profitable. It is now experiencing a severe cash shortage. For this reason requestinga $520000 long-term loan from Gulfport State Bank, ST10.000 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 in Electronics Last Yes L ities and Stoholders pity Total s e equity 1.013,000 Cowgative e rent Recon c ion 2. For both this year and last year a. Present the balance sheet in common-size format. During the past year, the company introduced several new products and raised the sing prices on a number of old product lines b. Present the income statement in common-size format down through net income. in order to improve to profit margin. The company also hired a new sales manager, who has expanded sales into several new territories Sales terms are 2/10, 1/30. All sales are on account Sabin Electronics Common Size Balance Sheets This Year Last Year Assets Current assets Cash 0.0 % Last Year 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, S15 par Retained earnings Total stockholders' equity Total liabilities and equity 0.0 Sabin Electronics Common-Size Income Statements This Year Sales Cost of goods sold Gross margin 00 Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income 0.0 0.0 001 0.0% 0.0%