Problem 14-18 Common-Size Statements and Financial Ratios for a Loan Application [LO14-1, LO14-2, LO14-3, LO14-4) 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 falrly profitable, It is now experiencing a severe cash shortage. For this reason, It is requesting a $650,000 long-term loan from Gulfport State Bank, $175,000 of which ill be used to bolster the Cash account and $475,000 of which will be used to modernize equipment. The company's financlal statements for the two most recent years follow Comparstive Balance Sheet Assets 300,000 12,000 50,000 745,000 7,000 ,544,000 520-000 3,064,000 Canh Marketable securitie ccounts receivable, net 72,000 1,095,000 4,000 1,931,000 2,099.400 4,030,400 iventor Prepaid ex urrent asnets Plant and equipment, net Total set Liabilities and Stockholders quity abiiitie Current iabilitles Bonds payable, 12 975,000 450,000 50,000 200,00 750,000 :625,000 40,000 405,400 Total liabilitie tockholders equitys 40,000 Common stock $15 par Retained earnings 024,000 total stockholders' equity otal 1iabilieies and stockholders equity 864 000 S J,064,00 S 4,030,400 Compacatve oome Statenent and Reconciliation