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 $35,110 notes, which are due on June 30, 2015, and September 30, 2015 Another note of $6,900 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 $311,400 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 $18,480 $12,710 Notes receivable 148,480 132,190 Accounts receivable (net) 133,020 125,820 Inventories (at cost) 106,880 51,800 Plant equipment (net of depreciation) 1,469,600 1,430,000 Total assets $1,876,460 $1,752,520 Liabilities and Owners Equity Accounts payable $80,590 $91,570 Notes payable 77,120 61,850 Accrued liabilities 32,112 16,170 Common stock (130,000 shares, $10 par) 1,300,000 1,300,000 Retained earnings a 386,638 282,930 Total liabilities and stockholders equity $1,876,460 $1,752,520 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 $3,001,200 $2,709,300 Cost of goods sold a 1,532,800 1,428,600 Gross margin 1,468,400 1,280,700 Operating expenses 862,220 785,400 Income before income taxes 606,180 495,300 Income taxes (40 ) 242,472 198,120 Net income $363,708 $297,180 a Depreciation charges on the plant and equipment of $107,900 and $110,600 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 $1,697,500 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 $35,110 notes, which are due on June 30, 2015, and September 30, 2015. Another note of $6,900 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 $311,400 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	$18,480	$12,710
Notes receivable	148,480	132,190
Accounts receivable (net)	133,020	125,820
Inventories (at cost)	106,880	51,800
Plant & equipment (net of depreciation)	1,469,600	1,430,000
Total assets	$1,876,460	$1,752,520

Liabilities and Owners Equity
Accounts payable	$80,590	$91,570
Notes payable	77,120	61,850
Accrued liabilities	32,112	16,170
Common stock (130,000 shares, $10 par)	1,300,000	1,300,000
Retained earnings^a	386,638	282,930
Total liabilities and stockholders equity	$1,876,460	$1,752,520

^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	$3,001,200	$2,709,300
Cost of goods sold^a	1,532,800	1,428,600
Gross margin	1,468,400	1,280,700
Operating expenses	862,220	785,400
Income before income taxes	606,180	495,300
Income taxes (40%)	242,472	198,120
Net income	$363,708	$297,180

^aDepreciation charges on the plant and equipment of $107,900 and $110,600 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 $1,697,500 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.