Problem 13-14B Financial Ratios for Common Stockholders [LO13-5, LO13-6] Kris Building Supply sells various building materials to retail outlets. The company has just approached Kingston State Bank requesting a $300,000 loan to strengthen the Cash account and to pay certain pressing short-term obligations. The company's financial statements for the most recent two years follow: Kris Building Supply Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses 9,000 482,000 954,080 25,000 $ 67,000 146,000 23,000 309,000 594,540 34,000 Total current assets 1,537,080 1,658,410 1,106,540 1,515,555 Plant and equipment, net Total assets $ 3,196,156 2,622,428 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 9% $ 833,000 451,000 629,000 629,000 Total liabilities 1,462,000 1,080,000 Stockholders' equity: Preferred stock, $25 par, 7% Common stock, $10 par Retained earnings 295,500 522,000 916,656 295,500 522,000 724,928