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 $34,920 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,970 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Headlands cash flow problems are due primarily to the companys desire to finance a $300,720 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		$18,120		$12,410
Notes receivable		148,700		130,840
Accounts receivable (net)		132,830		125,880
Inventories (at cost)		104,150		50,010
Plant & equipment (net of depreciation)		1,440,600		1,429,490
Total assets		$1,844,400		$1,748,630
Liabilities and Owners Equity
Accounts payable		$78,220		$90,330
Notes payable		75,810		61,590
Accrued liabilities		2,450		23,230
Common stock (130,000 shares, $10 par)		1,298,610		1,290,550
Retained earningsa		389,310		282,930
Total liabilities and stockholders equity		$1,844,400		$1,748,630
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		$2,992,720		$2,693,360
Cost of goods solda		1,514,810		1,418,870
Gross margin		1,477,910		1,274,490
Operating expenses		856,040		775,840
Income before income taxes		621,870		498,650
Income taxes (40%)		248,748		199,460
Net income		$373,122		$299,190
aDepreciation charges on the plant and equipment of $100,020 and $102,710 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 $1,682,280 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		enter the ratio rounded to 2 decimal places	:1		enter the ratio rounded to 2 decimal places	:1
2.		Acid-test (quick) ratio		enter the ratio rounded to 2 decimal places	:1		enter the ratio rounded to 2 decimal places	:1
3.		Inventory turnover					enter the inventory turnover rounded to 2 decimal places	times
4.		Return on assets		enter the return on assets in percentages rounded to 2 decimal places	%		enter the return on assets in percentages rounded to 2 decimal places	%

5.		Percent Changes		Percent Increase
		Sales revenue		enter percentages rounded to 2 decimal places	%
		Cost of goods sold		enter percentages rounded to 2 decimal places	%
		Gross margin		enter percentages rounded to 2 decimal places	%
		Net income after taxes		enter percentages rounded to 2 decimal places	%