value 10.00 points 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 $610,000 long-term loan from Gulfport State Bank, $155,000 of which will be used to bolster the Cash account and $455,000 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: 114,000 260,000 Cash Marketable securities 29,000 620,000 410,000 Accounts receivable, net 1,055,000 Inventory 705,000 Prepaid expenses 30,000 33,000 1,819,000 Total current assets 1,437,000 Plant and equipment, net 1,977,800 1,480,000 $3,796,800 2,917,000 Total assets Liabilities and Stockholders Equity Liabilities 855,000 410,000 Current liabilities Bonds payable, 12% 800,000 800,000 1,655,000 1,210,000 Total liabilities Stockholders' equity: 800,000 800,000 Common stock, $20 par Retained earnings 1,341,800 907,000 Total stockholders' equity 2,141,800 1,707,000 $3,796,800 2,917,000 Total liabilities and equity