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Bradburn CorporationBalance SheetMarch 3 1 2 0 2 6 2 0 2 5 Assets Cash $ 1 8 , 2 0 0 $ 1 2
Bradburn CorporationBalance SheetMarch
Assets
Cash
$
$
Notes receivable
Accounts receivable net
Inventories at cost
Plant & equipment net of depreciation
Total assets
$
$
Liabilities and Stockholders Equity
Accounts payable
$
$
Notes payable
Accrued liabilities
Common stock shares, $ par
Retained earningsa
Total liabilities and stockholders equity
$
$
aCash, dividends were paid at the rate of $ per share in fiscal year and $ per share in fiscal year
Bradburn CorporationIncome Statement For the Fiscal Years Ended March
Sales revenue
$
$
Cost of goods solda
Gross margin
Operating expenses
Income before income taxes
Income taxes
Net income
$
$
aDepreciation charges on the plant and equipment of $ and $ for fiscal years ended March and respectively, are included in cost of goods sold.
Instructions
Compute the following items for Bradburn Corporation.
Current ratio for fiscal years and
Acidtest quick ratio for fiscal years and
Inventory turnover for fiscal year
Return on assets for fiscal years and Assume total assets were $ at
Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year to
Identify and explain what other financial reports andor financial analyses might be helpful to the commercial loan officer of Topeka National Bank in evaluating Daniel Browns request for a time extension on Bradburns notes.
Assume that the percentage changes experienced in fiscal year as compared with fiscal year for sales, cost of goods sold, and operating expenses will be repeated in each of the next years. Is Bradburns desire to finance the plant expansion from internally generated funds realistic? Discuss.
Should Topeka National Bank grant the extension on Bradburns notes considering Daniel Browns statement about financing the plant expansion through internally generated funds? Discuss.
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