Kingbird 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 Kingbird 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 $34,970 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 Kingbird's cash flow problems are due primarily to the company's desire to finance a $300,080 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. Kingbird Corporation Kingbird Corporation Balance Sheet Income Statement March 31 For the Fiscal Years Ended March 31 2020 Assets 2021 2020 Sales revenue $2.716.340 Cash $18.120 $12.410 Cost of goods sold 1.415.660 Notes receivable 147.220 132.930 Gross margin 1.300.680 Accounts receivable (net) 130.790 124,530 Operating expenses 784640 Inventories (at cost) () Income before income taxes 104,940 516,000 49.570 Income taxes (40%) 206.496 Plant & equipment (net of depreciation) 1.446.500 1.416,510 Net income $309.624 Total assets $1.847,570 $1.735.950 Depreciation charges on the plant and equipment of 599.960 and $101.650 for fiscal years ended March 31, 2020 and 2021. Liabilities and Owners' Equity respectively, are included in cost of goods sold Accounts payable $79.360 $90.220 Notes payable 75.910 61.040 (a) Accrued liabilities 8.250 2.550 Compute the following items for Kingbird Corporation, (Round answers to 2 decimal places.es. 2250 225%) Common stock (130,000 shares. $10 par) ($ ) 1.296.650 1.312.800 Retained earnings 387,400 269.340 1. Current ratio for fiscal years 2020 and 2021 Total liabilities and stockholders' equity Acid-test (quick) ratio for fiscal years 2020 and 2021. $1.847,570 $ $1.735.950 Inventory turnover for fiscal year 2021 Return on assets for fiscal years 2020 and 2021. Assume total assets were $1.705.230 at 3/31/19) *Cash dividends were paid at the rate of $i per share in fiscal year 2020 and $2 per share in fiscal year 2021. 5. Percentage change in sales, cost of goods sold, gross margin and net income after taxes from fiscal year 2020 to 2021 5. Percent Changes Percent Increase 2021 $2.994 540 1.536.450 1.458090 856,120 603.970 240788 $361182 2 4 Sales revenue % 2020 2021 Cost of goods sold % 1. Current ratio :1 2.08 2.45 2. Acid-test (quick) ratio 1 1.75 1.81 Gross margin % 3. Inventory turnover times 4. Return on assets % % % Net income after taxes 1 Please help me with 3, 4 & 5
