Paul Sabin organized Sabin electronics 10 years ago to produce and sell several electronics devices on which he had secured patents.

Paul Sabin organized Sabin electronics 10 years ago to produce and sell several  electronics 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 $5,00,000 long term loan from Gulfport State Bank, $1,00,000 of which will be used to bolster the cash account and $4,00,000 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:     Cash  $           70,000.00  $       1,50,000.00 Marketable Securities  $                          -    $           18,000.00 Accounts Receivable,net  $       4,80,000.00  $       3,00,000.00 Inventory  $       9,50,000.00  $       6,00,000.00 Prepaid Expenses  $           20,000.00  $           22,000.00 Total Current Assets  $     15,20,000.00  $     10,90,000.00 Plant and equipment ,net  $     14,80,000.00  $     13,70,000.00 Total Assets  $     30,00,000.00  $     24,60,000.00