Concord 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 Concord 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 $34,920 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,040 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Concords cash flow problems are due primarily to the companys desire to finance a $298,670 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.

Concord 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 Concord 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 $34,920 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,040 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Concord's cash flow problems are due primarily to the company's desire to finance a $298,670 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. Concord Corporation Balance Sheet March 31 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) Total assets 2021 $18,060 146,670 131,210 104,100 1,444,840 $1,844,880 2020 $12,500 131,400 125,380 50,310 1,429,170 $1,748,760 Liabilities and Owners' Equity Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) a Retained earnings Total liabilities and stockholders' equity $79,330 75,880 3,030 1,295,390 391,250 $1,844,880 $91,520 61,310 15,240 1,301,330 279,360 $1,748,760 *Cash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. aCash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. 2020 Sales revenue Cost of goods solda Gross margin Operating expenses Income before income taxes Income taxes (40%) Concord Corporation Income Statement For the Fiscal Years Ended March 31 2021 $3,003,000 1,531,860 1,471,140 859,420 611,720 244,688 $367,032 $2,673,550 1,423,760 1,249,790 780,390 469,400 187,760 $281,640 Net income aDepreciation charges on the plant and equipment of $99,950 and $101,590 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Concord Corporation. (Round answers to 2 decimal places, e.g. 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 $1,681,980 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 :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 %