please answer Required 2A and 2B.

Saved Help Save & Exit Sub Paul Sabin orqanized 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 $550,000 long-term loan from Gulfport State Bank, $125,000 of which will be used to bolster the Cash account and $425,000 af which will be used to modernize equipment. The company's financial statements for the two most recent years follow: Check my worl Sabin Electronice Comparative Balance Sheet This Year Last Year Assets Current assets Cash Marketable securities Accounts receivable, net 90,000 200,000 23,000 542,000 995,000 22,000 1,649,000 1,638,000 350,000 645,000 Inventory Prepaid expenses Total current asseta Plant and equipment, net 27,000 1,245,000 1,420,000 $ 3,287,000 $2,665,000 Total assets Liabilities and Stockholders Equity Liabilities: Current 1iabilities Bonds payable, 126 Total liabilities Stockholders' equity Common atock, $15 par Retained earnings Total stockholders equity 480,000 850,000 825,000 850,000 1,330,000 1,675,000 740,000 872,000 740,000 595,000 1,335,000 1,612,000 $ 2,665,000 $3,287,000 Total liabilities and stockholders' equity Next > 1 of 2 Prev Check my work Sabin Electronics Comparative Income Statement and Reconciliation This Year $5,250,000 3,925,000 1,325,000 663,000 662,000 102,000 560,000 168,000 392,000 115,000 277,000 Last Year $4,500,000 3,500,000 1,000,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) 558,000 442,000 102,000 340,000 102.000 Net income 238,000 94,000 Common dividends Net income retained Beginning retained earnings 144,000 595,000 451,000 Ending retained earnings 872,000 595,000 During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 3/10, n/30. All sales are on account. Required: 1. To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year a. The amount of working capital. b. The current ratio. c. The acid-test ratio. 1 of 2 Next Prev d. The average collection period. (The accounts receivable at the beginning of last year totaled $300,000.) e. The average sale period. (The inventory at the beginning of last year totaled $550,000.) f. The operating cycle. g. The total asset turnover. (The total assets at the beginning of last year were $2,570,000.) h. The debt-to-equity ratio. i. The times interest earned ratio. j. The equity multiplier. (The total stockholders' equity at the beginning of last year totaled $1,325,000.) 2. For both this year and last year: a. Present the balance sheet in common-size format. b. Present the income statement in common-size format down through net income. Complete this question by entering your answers in the tabs below. Reg 2B Req 2A Req 1 ewore.to 1 denimal nlace 1 s d. The average collection period. (The accounts receivable at the beginning of last year totaled $300,000.) (Use 365 days in a year. Round your interrmediate calculations and final answers to 2 decimal place.) e. The average sale period. (The inventory at the beginning of last year totaled $550,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place. f. The operating cycle. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) g. The total asset turnover. (The total assets at the beginning of last year were $2,570,000.) (Round your answers to 2 decimal places.) h. The debt-to-equity ratio. (Round your answers to 2 decimal places.) i. The times interest earned ratio. (Round your answers to 2 decimal places.) j. The equity multiplier. (The total stockholders' equity at the beginning of last year totaled $1,325,000.) (Round your answers to 2 decimal places.) Show less A This Yoar Last Year Working capital 824,000 765,000 a. b. Current ratio 1.99 2.59 C. Acid-test ratio d. Average collection period 1.19 0.77 28.36 days 31.00 days 62.31 days 76.25 days Average sale period f. Operating cycle e. 90.67 days 107.25 days 0.17 1.76 g Total asset turnover 0.99 1.04 h. Debt-to-equity ratio 4.33 6.49 Times interest earned ratio i. 1.99 2.04 jEquity multiplier MHE Reader Req 1 Req 2A Req 2B Present the balance sheet in common-size format. (Round your answers to 1 decimal place.) Sabin Electronics Common-Size Balance Sheets This Year Last Year Assets Current assets Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses 0.0 Total current assets 0.0 Plant and equipment, net 0.0 % 0.0 % Total assets Liabilities and Stockholders' Equity Liabilities: 0% Current liabilities Bonds payable, 12 % 0.0 0.0 Total liabilities Stockholders' equity: Common stock, $15 par Retained earnings 0.0 0.0 Total stockholders' equity 0.0 % 0.0 % Total liabilities and equity in the taDS below. Req 1 Req 2A Req 2B Present the income statement in common-size format down through net income. (Round your answers to 1 decimal place.) Sabin Electronics Common-Size Income Statements This Year Last Year Sales % % Cost of goods sold Gross margin 0.0 0.0 Selling and administrative expenses 0.0 0.0 Net operating income Interest expense 0.0 0.0 Net income before taxes Income taxes 0.0 % 0.0 % Net income Req 2A