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 $34,710 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,960 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 $297,780 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 Assets 2021 2020 Cash $18,150 $12,590 Notes receivable 147,750 132,990 Accounts receivable (net) 132,330 125,910 Inventories (at cost) 104,180 50,480 Plant & equipment (net of depreciation) 1,452,190 1,415,700 Total assets $1,854,600 $1,737,670 Liabilities and Owners' Equity Accounts payable $79,360 $90,840 Notes payable 75,380 61,410 Accrued liabilities 12,350 15,660 1,311,880 1,287,060 Common stock (130,000 shares, $10 par) Retained earnings 375,630 282,700 Total liabilities and stockholders' equity $1,854,600 $1,737,670 Cash 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 $2,978,310 $2,687,000 Cost of goods solde 1,521,880 1,422,100 Gross margin 1,456,430 1.264,900 Operating expenses 853,970 779,230 Income before income taxes 602,460 485,670 Income taxes (40%) 240,984 194,268 Net income $361,476 $291,402 Depreciation charges on the plant and equipment of $100,150 and $102,620 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. Current ratio for fiscal years 2020 and 2021. 2. Acid-test (quick) ratio for fiscal years 2020 and 2021. 3. Inventory turnover for fiscal year 2021. 4. Return on assets for fiscal years 2020 and 2021. (Assume total assets were $1,700,920 at 3/31/19.) 5. Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2020 to 2021. 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 %