Blue Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Blue and is its current president . The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $34,960 notes, which are due on June 30, 2018, and September 30, 2018. Another note of $6,030 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Blue's cash flow problems are due primarily to the company's desire to finance a $299,210 plant expansion over the next 2 fiscal years through internally generated funds. The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years. BLUE CORPORATION BALANCE SHEET MARCH 31 2017 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) Total assets 2018 $18,280 147,800 131,830 103,960 1,441,730 $1,843,600 $12,630 132,850 124,830 50,250 1,408,680 $1,729,240 Liabilities and Owners' Equity Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) Retained earnings Total liabilities and stockholders' equity $78,440 75,590 12.090 1,312,780 364.700 $1,843,600 $91,050 62,110 6,630 1,304,780 264,670 $1,729,240 "Cash dividends were paid at the rate of $1 per share in fiscal year 2017 and $2 per share in fiscal year 2018. Sales revenue Cost of goods sold Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income BLUE CORPORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2018 $3,014,860 1,543,140 1.471.720 861,510 610,210 244,084 $366,126 2017 $2,692,590 1,437,230 1,255,360 774,820 480,540 192,216 $288,324 *Depreciation charges on the plant and equipment of $100,890 and $ 103,120 for fiscal years ended March 31, 2017 and 2018, respectively, are included in cost of goods sold. (a) Compute the following items for Blue Corporation (Round answer to 2 decimal places, eg. 225 or 225%) (2) (3) (4) (5) Current ratio for fiscal years 2017 and 2018. Acid-test (quick) ratio for fiscal years 2017 and 2018. Inventory turnover for fiscal year 2018. Return on assets for fiscal years 2017 and 2018. (Assume total assets were $1,677,350 at 3/31/16.) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2017 to 2018. 2017 2018 Current ratio :1 :1 (2) Acid-test (quick) ratio :1 times (3) Inventory turnover (4) Return on assets % %6 (5) Percent Changes Percent Increase Sales revenue % Cost of goods sold % Gross margin % Net income after taxes %