Current Attempt in Progress 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 $34,780 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,980 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 $300,880 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 2020 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) Total assets 2021 $18,070 146,950 132,930 105,490 1,457,240 $1,860,680 $12,390 132,410 126,360 49,670 1,432,610 $1,753,440 Liabilities and Owners' Equity Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) Retained earnings Total liabilities and stockholders' equity $78,990 75,540 23,290 1,296,050 386,810 $1,860,680 $90,140 61,750 22,600 1,294,970 283,980 $1,753,440 *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 solda Gross margin Operating expenses Income before income taxes Income taxes (40%) Culver Corporation Income Statement For the Fiscal Years Ended March 31 2021 $3,009,260 1,527,200 1,482,060 866,540 615,520 246,208 2020 $2,713,380 1,436,740 1,276,640 778,740 497,900 199,160 2020 Sales revenue Cost of goods solda Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income 2021 $3,009,260 1,527,200 1,482,060 866,540 615,520 246,208 $369,312 $2,713,380 1,436,740 1,276,640 778,740 497,900 199,160 $298,740 Depreciation charges on the plant and equipment of $99,730 and $103,000 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Culver 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 $1,683,260 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 Increase Percent Changes Sales revenue % Cost of goods sold % Gross margin % Net income after taxes %