Flounder 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 Flounder 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 $35,020 notes, which are due on June 30. 2018. and September 30, 2018. Another note of $6,040 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Flounder's cash flow problems are due primarily to the company's desire to finance a $302,480 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. FLOUNDER CORPORATION BALANCE SHEET MARCH 31 Assets 2018 2017 Cash $18,370 $12,530 Notes receivable 148,910 132,190 Accounts receivable (net) 131.240 125.020 Inventories (at cost) 105,170 50.210 Plant & equipment (net of depreciation) 1,447,150 1,413,460 Total assets $1,850,840 $1,733,410 Liabilities and Owners' Equity. Accounts payable $78,640 $91,420 Notes payable 75,850 61,660 Accrued liabilities 9,040 8,340 Common stock (130,000 shares, $10 par) 1,310,790 1,300,030 Retained earnings 376,520 271,960 Total liabilities and stockholders' equity $1,850,840 $1,733,410 -Cash dividends were paid at the rate of $1 per share in fiscal year 2017 and $2 per share in fiscal year 2018. FLOUNDER CORPORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2018 2017 Sales revenue $3,001,980 $2,700,330 Cost of goods sold 1,538,400 1,427,160 Gross margin 1,463,580 1,273,170 Operating expenses 864.890 787,400 Income before income taxes 598,690 485,770 Income taxes (40%) 239,476 194,308 Net income $359,214 $291,462 Depreciation charges on the plant and equipment of $100,330 and $101,800 for fiscal years ended March 31, 2017 and 2018, respectively, are included in cost of goods sold. (a) Compute the following items for Flounder 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 $1,694,120 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) Acid-test (quick) ratio (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