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 $35,430 notes, which are due on June 30, 2015, and September 30, 2015. Another note of $6,590 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 $304,700 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 $18,380 $13,450 Notes receivable 149,500 133,030 Accounts receivable (net) 134,650 126,560 Inventories (at cost) 106,230 50,870 Plant & equipment (net of depreciation) 1,468,300 1,425,000 Total assets $1,877,060 $1,748,910 Liabilities and Owners Equity Accounts payable $81,250 $91,810 Notes payable 77,450 63,320 Accrued liabilities 28,718 10,870 Common stock (130,000 shares, $10 par) 1,300,000 1,300,000 Retained earningsa 389,642 282,910 Total liabilities and stockholders equity $1,877,060 $1,748,910 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 $3,012,400 $2,715,300 Cost of goods solda 1,539,600 1,439,200 Gross margin 1,472,800 1,276,100 Operating expenses 861,580 787,000 Income before income taxes 611,220 489,100 Income taxes (40%) 244,488 195,640 Net income $366,732 $293,460 aDepreciation charges on the plant and equipment of $115,700 and $118,200 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 $1,697,300 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 Entry field with incorrect answer :1 Entry field with incorrect answer :1 (2) Acid-test (quick) ratio Entry field with incorrect answer :1 Entry field with incorrect answer :1 (3) Inventory turnover Entry field with incorrect answer times (4) Return on assets Entry field with incorrect answer % Entry field with incorrect answer %