Problem 14-19 Financial Ratios for Assessing Profitability and Market Performance [L014-5, L014-6] 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 fairty profitable,it is now experiencing a severe cash shortage. For this reason, it is requesting a $590,000 long-term loan from Gulfport State Bank, $145,000 of which will be used to bolster the Cash account and $445,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow Sabin glect Comparative Balance Sheet Assets Current assetsr Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses 104,000$ 240,000 27,000 390,000 685,000 94,000 1,035,000 26,000 1,759,000 1,751,000 3,510,000 31,00 Total current asset8 Plant and equipment, net Total assets Liabilities and Stockholders Equity Liabilitien 1,373,000 1,420,000 2,793,000 Current liabilitie Bonds payable, 128 845,000520,000 00,000 700,000 1,545,000 780,000 1,185,000 Total 1iabilities Stockholders' equitys L 220,00 Conmon stock, $15 par Retained earning Total stockholders equity Total liabilities and stockholdere equity 780,000 93,000 965 0001573.000 3,510,000 2,793,000 Sabin Electronica Comparative Inoome Statement and Reconeiliation This Year Last Year 5,450,000 4, 620,000 3-965,0003.540,000 Sales Cost of goods sold Gross marein -485-000 1.080.000