Culver 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 Culver and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,320 notes, which are due on June 30, 2018, and September 30, 2018. Another note of $5,940 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Culver's cash flow problems are due primarily to the company's desire to finance a $302,050 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. CULVER CORPORATION BALANCE SHEET MARCH 31 Assets Cash 2018 $18,130 148,340 132,970 Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) Total assets 2017 $12,400 132,610 125,610 49,700 1,431,850 $1,752,170 105,280 1,442,810 $1,847,530 Liabilities and Owners' Equity Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) $78,630 76,150 18,540 1,289,230 384,980 $1,847,530 $90,790 61,850 29,430 1,290,910 279,190 $1,752,170 Retained earningsa Total liabilities and stockholders' equity aCash dividends were paid at the rate of $1 per share in fiscal year 2017 and $2 per share in fiscal year 2018. 2017 $2,709,810 1,432,430 INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2018 Sales revenue $3,007,270 Cost of goods solda 1,522,790 Gross margin 1,484,480 Operating expenses 860,800 Income before income taxes 623,680 Income taxes (40%) 249,472 Net income $374,208 1,277,380 775,260 502,120 200,848 $301,272 Depreciation charges on the plant and equipment of $100,160 and $103,110 for fiscal years ended March 31, 2017 and 2018, respectively, are included in cost of goods sold. (a) Compute the following items for Culver Corporation. (Round answer to 2 decimal places, e.g. 2.25 or 2.25%.) (1) Current ratio for fiscal years 2017 and 2018. (2) Acid-test (quick) ratio for fiscal years 2017 and 2018. (3) Inventory turnover for fiscal year 2018. (4) Return on assets for fiscal years 2017 and 2018. (Assume total assets were $1,694,460 at 3/31/16.) (5) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2017 to 2018. 2017 2018 (1) Current ratio 2.36 :1 (2) Acid-test (quick) ratio 1.75 :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