Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patent Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $520,000 long-term loan from Gulfport State Bank, $110,000 of which will be used to bolster the Cash account and $410,000 of whi 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 Marketable securities Accounts receivable, net 78,000 0 170,000 20,000 503,000 965,000 22,000 320,000 615,000 24,000 1,149,000 1,350,000 Inventory Prepaid expenses Total current assets Plant and equipment, net 1,568,000 1,503,800 3,071,800 $2,499,000 Total assets Liabilities and Stockholders Equity Liabilities: Current 1iabilities Bonds payable, 12 810,000 450,000 700,000 1,510,000 700,000 1,150,000 Total liabilities Stockholders' equity: Common stock, $15 par Retained earnings Total stockholders' equity 710,000 851,800 1,561,800 710,000 639,000 1,349,000 $2,499,000 $3,071,800 Total liabilities and stockholders' equity Sabin Electronics Comparative Income Statement and Reconciliation This Year $5,100,000 Last Year $4,410,000 3,470,000 Sales 3,895,000 1,205,000 657,000 548,000 Cost of goods sold Gross margin 940,000 552,000 388,000 Selling and administrative expenses Net operating income e. The average sale period. (The inventory at the beginning of last year totaled $520,000.) (Round your intermediate calculations and final answers to 2 decimal place. Use 365 days in a year.) f. The operating cycle. (Round your intermedia te calculations and final answers to 2 decimal place. Use 365 days in a year g. The total asset turnover. (The total assets at the beginning of last year were $2,480,000.) (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 $1,339,000.) (Round your answers to 2 decimal places.) 84,000 84,000 Interest expense Net income before taxes 464,000 139,200 304,000 91,200 212,800 91,000 121,800 517,200 Income taxes (30%) Net income 324, 800 112,000 212,800 639,000 Common dividends Net income retained Beginning retained earnings S 851, 800 639,000 Ending retained earnings e. Average sale period f.Operating cycle gTotal asset turnover h. Debt-to-equity ratio i.Times interest earned ratio j. Equity multiplier days days days days