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, 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 Culver'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. Culver Corporation Balance Sheet March 31 Assets Cash Notes receivable 2021 2020 $18,060 $12,500 146,670 131,400 Accounts receivable (net) 131,210 125,380 Inventories (at cost) 104,100 50,310 Plant & equipment (net of depreciation) 1,444,840 1,429,170 Total assets $1,844,880 $1,748,760 Liabilities and Owners' Equity Accounts payable Notes payable $79,330 $91,520 75,880 61,310 Accrued liabilities 3,030 15,240 Common stock (130,000 shares, $10 par) 1,295,390 1,301,330 Retained earningsa 391,250 279,360 Total liabilities and stockholders' equity $1,844,880 $1,748,760