Bradburn 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 Bradburn and is its current president The company has been successful, but it currently is experiencing a shortage of funds On June 10, 2015, Daniel Brown approached the Topeka National Bank, asking for a 24 month extension on two $35,800 notes, which are due on June 30, 2015, and September 30, 2015 Another note of $6,480 is due on March 31, 2016, but he expects no difficulty in paying this note on its due date Brown explained that Bradburns cash flow problems are due primarily to the companys desire to finance a $304,500 plant expansion over the next 2 fiscal years through internally generated funds The commercial loan officer of Topeka National Bank requested financial reports for the last 2 fiscal years BRADBURN CORPORATION BALANCE SHEET MARCH 31 Assets 2015 2014 Cash $18,270 $13,350 Notes receivable 149,800 132,410 Accounts receivable (net) 135,070 126,330 Inventories (at cost) 106,180 52,030 Plant equipment (net of depreciation) 1,467,400 1,423,000 Total assets $1,876,720 $1,747,120 Liabilities and Owners Equity Accounts payable $79,990 $91,320 Notes payable 78,080 63,210 Accrued liabilities 23,256 9,820 Common stock (130,000 shares, $10 par) 1,300,000 1,300,000 Retained earnings a 395,394 282,770 Total liabilities and stockholders equity $1,876,720 $1,747,120 a Cash dividends were paid at the rate of $1 per share in fiscal year 2014 and $2 per share in fiscal year 2015 BRADBURN CORPORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2015 2014 Sales revenue $3,018,600 $2,719,300 Cost of goods sold a 1,535,600 1,440,100 Gross margin 1,483,000 1,279,200 Operating expenses 861,960 782,800 Income before income taxes 621,040 496,400 Income taxes (40 ) 248,416 198,560 Net income $372,624 $297,840 a Depreciation charges on the plant and equipment of $108,200 and $111,000 for fiscal years ended March 31, 2014 and 2015, respectively, are included in cost of goods sold (a) Compute the following items for Bradburn Corporation (Round answer to 2 decimal places, e g 2 25 ) (1) Current ratio for fiscal years 2014 and 2015 (2) Acid test (quick) ratio for fiscal years 2014 and 2015 (3) Inventory turnover for fiscal year 2015 (4) Return on assets for fiscal years 2014 and 2015 (Assume total assets were $1,696,100 at 3 31 13 ) (5) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2014 to 2015 2014 2015 (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

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Bradburn Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one

Bradburn 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 Bradburn and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2015, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,800 notes, which are due on June 30, 2015, and September 30, 2015. Another note of $6,480 is due on March 31, 2016, but he expects no difficulty in paying this note on its due date. Brown explained that Bradburns cash flow problems are due primarily to the companys desire to finance a $304,500 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested financial reports for the last 2 fiscal years.

BRADBURN CORPORATION BALANCE SHEET MARCH 31
Assets	2015	2014
Cash	$18,270	$13,350
Notes receivable	149,800	132,410
Accounts receivable (net)	135,070	126,330
Inventories (at cost)	106,180	52,030
Plant & equipment (net of depreciation)	1,467,400	1,423,000
Total assets	$1,876,720	$1,747,120

Liabilities and Owners Equity
Accounts payable	$79,990	$91,320
Notes payable	78,080	63,210
Accrued liabilities	23,256	9,820
Common stock (130,000 shares, $10 par)	1,300,000	1,300,000
Retained earnings^a	395,394	282,770
Total liabilities and stockholders equity	$1,876,720	$1,747,120

^aCash dividends were paid at the rate of $1 per share in fiscal year 2014 and $2 per share in fiscal year 2015.

BRADBURN CORPORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31
2015	2014
Sales revenue	$3,018,600	$2,719,300
Cost of goods sold^a	1,535,600	1,440,100
Gross margin	1,483,000	1,279,200
Operating expenses	861,960	782,800
Income before income taxes	621,040	496,400
Income taxes (40%)	248,416	198,560
Net income	$372,624	$297,840

^aDepreciation charges on the plant and equipment of $108,200 and $111,000 for fiscal years ended March 31, 2014 and 2015, respectively, are included in cost of goods sold.

(a)

Compute the following items for Bradburn Corporation. (Round answer to 2 decimal places, e.g. 2.25.)

(1)	Current ratio for fiscal years 2014 and 2015.
(2)	Acid-test (quick) ratio for fiscal years 2014 and 2015.
(3)	Inventory turnover for fiscal year 2015.
(4)	Return on assets for fiscal years 2014 and 2015. (Assume total assets were $1,696,100 at 3/31/13.)
(5)	Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2014 to 2015.