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, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $34,960 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,030 is due on March 31, 2022, 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 Assets 2021 2020 Cash $18,280 $12,630 Notes receivable 147,800 132,850 Accounts receivable (net) 131,830 124,830 Inventories (at cost) 103,960 50,250 Plant & equipment (net of depreciation) 1,441,730 1,408,680 Total assets $1,843,600 $1,729,240 Liabilities and Owners' Equity Liabilities and Owners' Equity Accounts payable $78,440 $91.050 Notes payable 75,950 62.110 Accrued liabilities 11,730 6,630 Common stock (130,000 shares, $10 par) 1,312,780 1,304,780 Retained earningsa 364.700 264.670 Total liabilities and stockholders' equity $1,843,600 $1,729,240 *Cash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. Blue Corporation Income Statement For the Fiscal Years Ended March 31 2021 2020 Sales revenue $3,014,860 $2,692,590 Cost of goods solda 1,543,140 1,437,230 Gross margin 1,471,720 1,255,360 Operating expenses 861,510 774,820 Income before income taxes 610,210 480,540 Income taxes (40%) 244,084 192,216 Net income $366,126 $288,324 Depreciation charges on the plant and equipment of $100,890 and $103,120 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Blue Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.) (a) Compute the following items for Blue Corporation. (Round answers to 2 decimal places, eg. 2.25 or 2.25%.) 1. Current ratio for fiscal years 2020 and 2021. 2. Acid-test (quick) ratio for fiscal years 2020 and 2021. 3. Inventory turnover for fiscal year 2021. 4. Return on assets for fiscal years 2020 and 2021. (Assume total assets were $1,677,350 at 3/31/19.) 5. Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2020 to 2021. 2020 2021 1. Current ratio .1 :1 2. Acid-test (quick) ratio .1 :1 3. Inventory turnover times 4. Return on assets % 5. Percent Changes Percent Increase Sales revenue % Cost of goods sold % Gross margin % Net income after taxes %