Larkspur 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 Larkspur 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 $35,310 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,030 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Larkspur's cash flow problems are due primarily to the company's desire to finance a $299,020 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. Larkspur Corporation Balance Sheet March 31 Assets Cash Notes receivable 2021 2020 $18,380 $12,510 149,450 131,550 Accounts receivable (net) 133,000 126,430 Inventories (at cost) 104,050 50,100 Plant & equipment (net of depreciation) 1,456,620 1,424,470 Total assets $1,861,500 $1,745,060 Liabilities and Owners' Equity Accounts payable $79,010 $90,820 Notes payable 76,650 61,020 Accrued liabilities 30,340 11,220 Common stock (130,000 shares, $10 par) 1,289,630 1,302,000 Retained earningsa 385,870 280,000 Total liabilities and stockholders' equity $1,861,500 $1,745,060 aCash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. Larkspur Corporation Income Statement For the Fiscal Years Ended March 31 2021 2020 Sales revenue Cost of goods solda Gross margin $2,978,530 $2,723,850 1,534,780 1,411,590 1,443,750 1,312,260 Operating expenses 864,870 784,140 Income before income taxes 578,880 528,120 Income taxes (40%) 231,552 211,248 Net income $347,328 $316,872 aDepreciation charges on the plant and equipment of $99,930 and $103,250 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Larkspur 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 $1,675,840 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. 1. Current ratio 2. Acid-test (quick) ratio 3. Inventory turnover 2020 :1 :1 4. Return on assets % 2021 :1 :1 times di % 5. Percent Changes Percent Increase Sales revenue Cost of goods sold Gross margin % % % Net income after taxes %