you have just been hired as a loan offcer at San Dlsgo State Bank Your supervisor has given you a hie containing a request from Mobile Company, a manufacturer of auto components, for a $1,000,000 five-year loan. Financial statement data on the company for the last two years are given below a fie Mobile Company Comparative Balance Sheet This Year Last Year Assets Current assets: $ 327,000 S 424,000 99,000 607.000 730,000 70,000 Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses 904,000 1,330,000 85,000 Total current assets Plant and equipment, net 2,846,000 3,435,800 1,930,000 3,091,400 $6,081,800 5,021,400 Total assets Liabilities and Stockholders' Equity Current labilities Bonds payable $1,250,000 1,280,000 750,000 1,080,000 2,530,000 1,830,000 Total labilities Stockholders' equity Preferred stock, 8%, $30 par value Common stock, $40 par value Retained earnings 600,000 2,000,000 951,800 800,000 2,000,000 591,400 Total stockholders' equity 3,551,800 3,191400 3,191,400 Total liabilities and stockholders' equity $6,081,800 5,021,400 Mobile Company Comparative Income Statement and Reconciliation Last Year This Year $5,400,000 4,220,000 Sales Cost of goods sold 4,070,000 3,160,000 Gross margin Selling and administrative expenses 1,330,000 530,000 1,060,000 510,000 Net operating income Interest expense 800,000 128,000 550,000 108,000 Net income before taxes Income taxes (30%) 672,000 201,800 442,000 132,800 Net income 470,400 309,400