Headland 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 Headland 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 $35,140 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,990 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Headland's cash flow problems are due primarily to the company's desire to finance a $301,430 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. Headland Corporation Balance Sheet March 31 2021 2020 Assets Cash $12,500 132,010 125,250 Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) Total assets $18,340 147,090 132,350 105,410 1,434,630 $1,837,820 49,960 1,411,230 $1,730,950 $91,760 61,120 Liabilities and Owners' Equity Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) Retained earningsa Total liabilities and stockholders' equity $79,720 76,270 5,340 1,305,620 370,870 $1,837,820 11,960 1,311,870 254,240 $1,730,950 aCash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. Headland Corporation Income Statement For the Fiscal Years Ended March 31 2021 2020 Sales revenue Cost of goods solda Gross margin Operating expenses Income before income taxes Income taxes (40%) $3,028,020 1,534,160 1,493,860 861,150 632,710 253,084 $2,712,300 1,416,420 1,295,880 775,180 520,700 208,280 $312,420 Net income $379,626 aDepreciation charges on the plant and equipment of $99,460 and $102,440 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Headland Corporation. (Round answers to 2 decimal places, e.g. 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 $1,672,060 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 Changes Percent Increase Sales revenue % Cost of goods sold % Gross margin % Net income after taxes %