Bonita 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 Bonita 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 $35,150 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,990 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date.

Brown explained that Bonitas cash flow problems are due primarily to the companys desire to finance a $302,830 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.

Bonita Corporation Balance Sheet

March 31 Assets 2021 2020

Cash $18,160 $12,510Notes receivable 147,630 131,480 Accounts receivable (net) 131,500 125,740 Inventories (at cost) 104,010 49,720 Plant & equipment (net of depreciation) 1,445,080 1,423,170 Total assets $1,846,380 $1,742,620 Liabilities and Owners Equity Accounts payable $79,000 $90,630 Notes payable 76,290 61,680 Accrued liabilities 17,720 13,720 Common stock (130,000 shares, $10 par) 1,287,300 1,296,480 Retained earningsa 386,070 280,110 Total liabilities and stockholders equity $1,846,380 $1,742,620 aCash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. Bonita Corporation Income Statement For the Fiscal Years Ended March 31 2021 2020 Sales revenue $3,010,300 $2,703,670 Cost of goods solda 1,545,260 1,433,530 Gross margin 1,465,040 1,270,140 Operating expenses 864,330 779,210 Income before income taxes 600,710 490,930 Income taxes (40%) 240,284 196,372 Net income $360,426 $294,558 aDepreciation charges on the plant and equipment of $99,620 and $101,910 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Bonita Corporation. (Round answers to 2 decimal places, e.g. 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 $1,697,870 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 enter the ratio rounded to 2 decimal places :1 enter the ratio rounded to 2 decimal places :1 2. Acid-test (quick) ratio enter the ratio rounded to 2 decimal places :1 enter the ratio rounded to 2 decimal places :1 3. Inventory turnover enter the inventory turnover rounded to 2 decimal places times 4. Return on assets enter the return on assets in percentages rounded to 2 decimal places % enter the return on assets in percentages rounded to 2 decimal places % 5. Percent Changes Percent Increase Sales revenue enter percentages rounded to 2 decimal places % Cost of goods sold enter percentages rounded to 2 decimal places % Gross margin enter percentages rounded to 2 decimal places % Net income after taxes enter percentages rounded to 2 decimal places %