Ivanhoe Corporation was formed five years ago through an initial public offering (IPO) of common shares. Daniel Brown, who owns 15% of the common shares, was one of the organizers of Ivanhoe and is its current president. The company has been successful, but it is currently experiencing a shortage of funds. On June 10, 2020, Daniel Brown approached the Hibernia Bank, asking for a 24-month extension on two $36,200 notes, which are due on June 30, 2020, and September 30, 2020. Another note for $5,400 is due on March 31, 2021, but he expects no difficulty in paying this note on its due date. Brown explained that Ivanhoe's cash flow problems are due primarily to the company's desire to finance a $284,500 plant expansion spent evenly over the next two fiscal years through internally generated funds. The plant expansion will be used in operations following the completion of the construction in 2023. The commercial loan officer of Hibernia Bank requested financial reports for the past two fiscal years. These reports are reproduced below. IVANHOE CORPORATION Statement of Financial Position March 31 Assets 2020 2019 Cash $17,870 $11,800 Notes receivable 145,630 125,600 Accounts receivable (net) 130,510 132,200 Inventories (at cost) 105,480 48,600 Plant and equipment (net of depreciation) 1,411,700 1,336,000 Total assets $1,811,190 $1,654,200 Equity and Liabilities Share capital-common (128,000 shares issued) $1,280,000 $1,280,000 Retained earnings (note 1) 382,010 279,000 Accrued liabilities 8,890 5,830 Notes payable (current) 77,800 60,420 Accounts payable 62,490 28,950 Total equity and liabilities $1,811,190 $1,654,200 Note 1: Cash dividends were paid at the rate of $1 per share in fiscal year 2019 and $2 per share in fiscal year 2020. IVANHOE CORPORATION Income Statement For the Fiscal Years Ended March 31 2020 2019 Sales $2,978,800 $2,681,000 Cost of goods sold (note 2) 1,518,900 1,418,000 Gross margin $1,459,900 $1,263,000 Operating expenses 792,500 764,500 Income before income tax $667,400 $498,500 Income tax (30%) 200,220 149,550 Net income $467,180 $348,950 Note 2: Depreciation charges on the plant and equipment of $93,000 and $95,325 for fiscal years ended March 31, 2019 and 2020, respectively, are included in cost of goods sold. Additional information: 2020 2019 1. Cash flows from operating activities $459,000 $350,000 2. Capital expenditures for the year 128,000 110,000 Compute the following items for Ivanhoe Corporation. Compute current ratio for fiscal years 2019 and 2020. (Round answers to 2 decimal places, e.g. 5.75:1.) 2019 2020 Current ratio to 1 to 1 eTextbook and Media Compute Quick (acid-test) ratio for fiscal years 2019 and 2020. (Round answers to 2 decimal places, e.g. 5.75:1.) 2019 2020 Quick (acid-test) Ratio to 1 to 1 eTextbook and Media Calculate receivables turnover for fiscal year 2020. (Round answer to 1 decimal place, e.g. 15.5.) 2020 Receivables turnover times eTextbook and Media Calculate inventory turnover for fiscal year 2020. (Round answer to 1 decimal place, e.g. 15.5.) 2020 Inventory Turnover times eTextbook and Media Calculate the asset turnover for fiscal year 2020. (Round answer to 2 decimal places, e.g. 15.25.) 2020 Asset Turnover times Calculate the gross profit percentage for fiscal years 2019 and 2020. (Round answers to 1 decimal place, e.g. 15.5%.) 2019 2020 Gross profit percentage % % eTextbook and Media Calculate the profit margin on sales for fiscal years 2019 and 2020. (Round answers to 1 decimal place, e.g. 15.5%.) 2019 2020 Profit margin on sales % eTextbook and Media Calculate the return on assets for fiscal years 2019 and 2020. (Assume total assets were $1,566,500 at March 31, 2018.) (Round answers to 1 decimal place, e.g. 15.5%.) 2019 2020 Return on Assets % % eTextbook and Media Calculate the return on common share equity for fiscal years 2019 and 2020. (Assume total equity was $1,499,000 at March 31, 2018.) (Round answers to 1 decimal place, e.g. 15.5%.) 2019 2020 Return on common share equity eTextbook and Media Calculate the earnings per share for fiscal years 2019 and 2020. (Round answers to 2 decimal places, e.g. 15.25.) 2019 2020 Earnings per share $ $ Calculate the payout ratio for fiscal years 2019 and 2020. (Round answers to 1 decimal place, e.g. 15.5%.) 2019 2020 Payout ratio % eTextbook and Media Calculate the debt to total assets for fiscal years 2019 and 2020. (Round answers to 1 decimal place, e.g. 15.5%.) 2019 2020 % Debt to total assets % eTextbook and Media Free cash flow to operating cash flows for fiscal years 2019 and 2020. (Round answers to 1 decimal places, e.g. 15.2%.) 2019 2020 Free cash flow to operating cash flows % % eTextbook and Media Calculate the book value per share for fiscal years 2019 and 2020. (Round answers to 2 decimal places, e.g. 15.25.) 2019 2020 Book value per share $ Calculate the percentage change in sales, cost of goods sold, gross margin, and net income after tax from fiscal year 2019 to 2020. (Round percent increase answers to 2 decimal places, e.g. 52.75%.) Percent Changes Amounts Percent Increase 2020 2019 Sales $ Cost of goods sold Operating expenses Gross margin Net income $ % % % % %