Indigo 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 Indigo 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 $ 35,150 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 Indigos cash flow problems are due primarily to the companys desire to finance a $ 302,830 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.

Indigo Corporation Balance Sheet March 31
Assets		2021		2020
Cash		$ 18,160		$ 12,510
Notes receivable		147,630		131,480
Accounts receivable (net)		131,500		125,740
Inventories (at cost)		104,010		49,720
Plant & equipment (net of depreciation)		1,445,080		1,423,170
Total assets		$ 1,846,380		$ 1,742,620
Liabilities and Owners Equity
Accounts payable		$ 79,000		$ 90,630
Notes payable		76,290		61,680
Accrued liabilities		17,720		13,720
Common stock (130,000 shares, $10 par)		1,287,300		1,296,480
Retained earningsa		386,070		280,110
Total liabilities and stockholders equity		$ 1,846,380		$ 1,742,620
aCash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021.

^aCash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021.

Indigo Corporation Income Statement For the Fiscal Years Ended March 31
		2021		2020
Sales revenue		$ 3,010,300		$ 2,703,670
Cost of goods solda		1,545,260		1,433,530
Gross margin		1,465,040		1,270,140
Operating expenses		864,330		779,210
Income before income taxes		600,710		490,930
Income taxes (40%)		240,284		196,372
Net income		$ 360,426		$ 294,558
aDepreciation charges on the plant and equipment of $ 99,620 and $ 101,910 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold.

(a) Compute the following items for Indigo 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 $ 1,697,870 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	%