You have just been hired as a loan officer at Fairfield State Bank. Your supervisor has given you a file containing a request from Hedrick 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: Hedrick Company Comparative Balance Sheet This Year Last Year Assets Current assets: 324,000 414,000 Cash 105,000 903,000 603,000 Marketable securities Accounts receivable, net 1,410,000 760,000 Inventory Prepaid expenses 88,000 57,000 Total current assets 2,725,000 1,939,000 Plant and equipment, net 3,339,300 3,207,200 $6,064,300 $5,146,200 Total assets Liabilities and Stockholders' Equity Liabilities $1,320,000 740,000 Current liabilities Bonds payable, 10% 1,270,000 1,140,000 Total liabilities 2,590,000 1,880,000 Stockholders' equity: 600,000 600,000 Preferred stock, 8%, $30 par value Common stock, $40 par value 2,000,000 2,000,000 874,300 666,200 Retained earnings Total stockholders' equity 3,474,300 3,266,200 $6,064,300 $5,146,200 Total liabilities and stockholders' equity