Cullumber 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 Cullumber and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2026, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,290 notes, which are due on June 30, 2026, and September 30, 2026. Another note of $6,050 is due on March 31, 2027, but he expects no difficulty in paying this note on its due date. Brown explained that Cullumber's cash flow problems are due primarily to the company's desire to finance a $302,830 plant expansion over the next 2 fiscal years through internally generated funds. The notes payable due at march 31, 2025 are due prior to March 31, 2026. The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years. Cullumber Corporation Balance Sheet March 31 Assets Cash Notes receivable 2026 2025 $18,070 $12,550 146,560 132,210 Accounts receivable (net) 130,890 124,430 Inventories (at cost) 105,500 49,630 Plant & equipment (net of depreciation) 1,455,450 1,413,000 Total assets $1,856,470 $1,731,820 Liabilities and Stockholders' Equity Accounts payable $79,550 $90,880 Notes payable 76,630 61,070 Accrued liabilities 14,100 9,738 Common stock (130,000 shares, $10 par) 1,301,840 1,291,740 Retained earningsa 384,350 278,392 Total liabilities and stockholders' equity $1,856,470 $1,731,820 *Cash, dividends were paid at the rate of $1 per share in fiscal year 2025 and $2 per share in fiscal year 2026. Sales revenue Cost of goods sold Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income Cullumber Corporation Income Statement For the Fiscal Years Ended March 31 2026 2025 $2,994,080 $2,725,510 1,518,900 1,438,280 1,475,180 1,287,230 865,250 782,460 609,930 504,770 243,972 201,908 $365,958 $302,862 *Depreciation charges on the plant and equipment of $100,600 and $102,130 for fiscal years ended March 31, 2025 and 2026, respectively, are included in cost of goods sold. (a) Compute the following items for Cullumber Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.) 1. Current ratio for fiscal years 2025 and 2026. 2. Acid-test (quick) ratio for fiscal years 2025 and 2026. 3. Inventory turnover for fiscal year 2026. 4. Return on assets for fiscal years 2025 and 2026. (Assume total assets were $1,697,000 at 3/31/24.) 5. Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2025 to 2026. 1. Current ratio 2. Acid-test (quick) ratio 3. Inventory turnover 4. Return on assets 2026 5. Percent Changes Percent Increase Sales revenue % Cost of goods sold Gross margin Net income do % % de :1 de % :1 times % do 2025 :1 :1 de %