+ Ch 24: Homework Question 3 of 6 -/1 View Policies Current Attempt in Progress Pronghorn 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 Pronghorn and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,310 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,030 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Pronghorn's cash flow problems are due primarily to the company's desire to finance a $299,020 plant expansion over the next 2 fiscal years through internally generated funds. The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years. Pronghorn Corporation Balance Sheet March 31 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) Total assets 2021 $18.380 149,450 133,000 104,050 1.456,620 $1.861,500 2020 $12,510 131,550 126,430 50.100 1,424.470 $1.745.060 Liabilities and Owners' Equity Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares. $10 par) $79,010 76,650 30,340 1.289,630 $90,820 61.020 11,220 1,302,000 MADA Question 3 of 6 -/1 E Accruea nabilities Common stock (130,000 shares, $10 par) Retained earnings Total liabilities and stockholders' equity 30,340 1.289,630 385,870 $1,861,500 11,ZZU 1,302,000 280,000 $1,745,060 Cash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. Sales revenue Cost of goods sold Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income Pronghorn Corporation Income Statement For the Fiscal Years Ended March 31 2021 $2.978,530 1,534,780 1,443,750 864,870 578,880 231.552 $347.328 2020 $2,723,850 1,411,590 1,312,260 784.140 528,120 211,248 $316,872 Depreciation charges on the plant and equipment of $99,930 and $103,250 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Pronghorn Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.) Question 3 of 6 -/1 Income before income taxes Income taxes (40%) Net income 578,880 231,552 $347,328 528,120 211,248 $316,872 Depreciation charges on the plant and equipment of $99,930 and $103,250 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Pronghorn Corporation. (Round answers to 2 decimal places, eg, 2.25 or 2.25%) 1. 2. 3. Current ratio for fiscal years 2020 and 2021. Acid-test (quick) ratio for fiscal years 2020 and 2021. Inventory turnover for fiscal year 2021. Return on assets for fiscal years 2020 and 2021. (Assume total assets were $1,675,840 at 3/31/19.) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2020 to 2021 4. 5. 2020 2021 1. Current ratio :1 :1 2. Acid-test (quick) ratio :1 3. Inventory turnover times 4. Return on assets % MacBook Air 20 F3 OOO DOO FI F2 F4 1S FO 7 # 3 $ 4 % 5 & 7 2 6 8 9 Question 3 of 6 -11 3. 4. WarnFOUVIA ORO AVEVO Inventory turnover for fiscal year 2021. Return on assets for fiscal years 2020 and 2021. (Assume total assets were $1,675,840 at 3/31/19.) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2020 to 2021. 5. 2020 2021 1. Current ratio :1 :1 2. Acid-test (quick) ratio :1 :1 3. Inventory turnover times 4. Return on assets % % 5. Percent Increase Percent Changes Sales revenue % Cost of goods sold % Gross margin % Net income after taxes 96 e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer MacBook Air
