t View Favorites Tools Help 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 $550,000 long-termloan from Gulfport State Bank, $125,000 of which will be used to bolster the Cash account and SA25.000 of which will be used to modernize equipment. The company's finandal statements for the two most recent years follow. Comparative Balance Sheet Assets Current assets: 90,000 200.000 Marketable securities 23,000 Accounts receivable, net 542.000 350,000 Inventory 995.000 645,000 Prepaid expenses 22,000 27,000 Total current assets 1,245.000 1,649,000 Plant and equipment, net 1,638,000 1.420.000 Total assets $3,287,000 2,665,000 Liabilities and Stockholders Equity Liabil ities: Current liabilities 825,000 480,000 Bonds payable, 12% 850,000 850.000 Total liabilities 1,675,000 1,330,000 Stockholders' equity Common stock, $15 par 840,000 772,000 Retained earnings 495.000 Total stockholders' equity 1,612,000 1,335,000 Total liabilities and equity $3.287.000 2,665,000 O Ask me anything