BRADBURN CORBORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2011 2010 Sales Cost of goods sold $3,000000 (1,530000) $2,700000 (1,425000) Gross margin Operating expenses 1,470000 ( 860,000) 1,275000 ( 780,000) Income before income taxes Income taxes (40) Netincome. $ 610,000 ( 244,000) 366,000 495,000 $( 198,000) 297,000 a, Depreciation charges on the plant and equipment of 100000$ and $102500 for fiscal years ended march 31,2010 and 2011,respectively are included in cost of goods sold. Required a)compute the following items for Bradburn corporation 1)current ratio for fiscial years 2010 and 2011 2)Acid-test (quick) ratio for fiscial years 2010 and 2011 3)inventory turnover for fiscial year 2011 4)Return on assets for fiscal years 2010 and 2011(Assume total assets were $1688500 at 31-3- 2009 5)percentage change in sales,cost of goods sold,gross margin and net income after taxess from fiscal year 2010 to 2011 b)Identify and explain what other financial reports and 10/or financial analyses might be helpful to the commercial loan an officer of Topeka national Bank in evaluating Daniel Browns request for atime extension on Bradbuns notes -) Assume that the percentage changes experienced in fiscal year 2011 as compared with fisca ear 2010 for sales and cost of good sold will be repeated incach of the next 2 years ,is radburn desire to finance the plant expansion from internally generated funds realistic Discuss BRADBURN CORBORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2011 2010 Sales Cost of goods sold $3,000000 (1,530000) $2,700000 (1,425000) Gross margin Operating expenses 1,470000 ( 860,000) 1,275000 ( 780,000) Income before income taxes Income taxes (40) Netincome. $ 610,000 ( 244,000) 366,000 495,000 $( 198,000) 297,000 a, Depreciation charges on the plant and equipment of 100000$ and $102500 for fiscal years ended march 31,2010 and 2011,respectively are included in cost of goods sold. Required a)compute the following items for Bradburn corporation 1)current ratio for fiscial years 2010 and 2011 2)Acid-test (quick) ratio for fiscial years 2010 and 2011 3)inventory turnover for fiscial year 2011 4)Return on assets for fiscal years 2010 and 2011(Assume total assets were $1688500 at 31-3- 2009 5)percentage change in sales,cost of goods sold,gross margin and net income after taxess from fiscal year 2010 to 2011 b)Identify and explain what other financial reports and 10/or financial analyses might be helpful to the commercial loan an officer of Topeka national Bank in evaluating Daniel Browns request for atime extension on Bradbuns notes -) Assume that the percentage changes experienced in fiscal year 2011 as compared with fisca ear 2010 for sales and cost of good sold will be repeated incach of the next 2 years ,is radburn desire to finance the plant expansion from internally generated funds realistic Discuss
