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 the current president. The company has been successful, but it currently is experiencing a shortage of funds. On June $10,2014,$ Daniel Brown approached the

Topeka National Bank, asking for a $24-$month extension on two $$35,000$ notes, which are due on June $30,2015,$ and September $30,2015.$ Another note of $$6,000$ is due on

March $31,2016,$ but the company anticipates no difficulty in paying this note on its due date. Brown explained that Bradburn's cash$-$flow problems are due primarily to the

company's desire to finance a $$300,000$ plant expansion over the next $2$ fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the financial reports $($balance sheet and income statement$)$ for the last $2$ fiscal years. See the Excel template for

these reports.

Using this Excel template, provide the following information. Be sure to include formulas for the cells that are labeled formulas. Be sure all amounts are linked to the proper cells:

Compute the following items for Bradburn Corporation:

Current ratio for fiscal years $2014$ and $2015.$

Acid$-$test $($quick$)$ ratio for fiscal years $2014$ and $2015.$

Inventory turnover for fiscal year $2015.$

Return on assets for fiscal years $2014$ and $2015.($Assume total assets were $$1,688,500$ at $\frac{3}{31}\frac{?}{13}.)$

Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year $2014$ to $2015.$

Identify and explain what other financial reports and$/$or financial analyses might be helpful to the commercial loan officer of Topeka National Bank in evaluating Daniel

Brown's request for a time extension on Bradburn's notes.

Assume that the percentage changes experienced in fiscal year $2015$ as compared with fiscal year $2014$ for sales and cost of goods sold will be repeated in each of the next $2$

years. Is Bradburn's desire to finance the plant expansion from internally generated funds realistic? Discuss.

Should Topeka National Bank grant the extension on Bradburn's notes considering Daniel Brown's statement about financing the plant expansion through internally

generated funds? Discuss. $($Ratio Computations and Additional Analysis$)$ Bradburn Corporation was formed $5$ years aqo

through a public subscription of common stock. Daniel Brown, who owns

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 $10,2014$ Daniel Brown approached the

Topeka National Bank, asking for a $24-$month extension on two $$35,000$ notes, which are due on

June $30,2015,$ and September $30,2015.$ Another note of $$$6,000$ is due on March $31,2016,$ but he

expects no difficulty in paying this note on its due date. Brown explained that Bradburn's cash flow problems

are due primarily to the company's desire to finance a

$2$ 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

Statement of Financial Position

March $31$

${?}^3$ Cash dividends were paid at the rate of $$1$ per share in fiscal year $2014$ and $$2$ per share in fiscal year

BRADBURN CORPORATION

Income Statement

For The Fiscal Year Ended March $31$

for the fiscal years ended March $31,2014,$ and $2015,$ respectively, are included in cost of goods sold. Instructions:

Fill in the provided matrix and utilize it as the matrix for "VLOOKUP" formulas within the cells below.

$($a$)$ Compute the following items for Bradburn Corporation:

$(1)$ 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

at March $31,2013.)$

$(5)$ Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year

$2014$ to $2015.$ Omit $"000"$ from the values.

Sales

Cost of goods sold

Gross margin

Net income after taxes

Note: The formulas in some cell formulas are "live" and need values placed in their source cells.

$($b$)$ Identify and explain what other financial reports and$/$or financial analyses might be helpful to the

commercial loan officer of Topeka National Bank in evaluating Daniel Brown's request for a time extension

on Bradburn's notes.

Other financial reports and financial analyses which might be helpful to the commercial loan officer of Spokane

National Bank include:$($c$)$Assume percentage