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 $34,920 notes, which are due on June 30, 2021, and September 30, 2021 Another note of $6,040 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date Brown explained that Larkspurs cash flow problems are due primarily to the companys desire to finance a $298,670 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 2021 2020 Cash $18,060 $12,500 Notes receivable 146,670 131,400 Accounts receivable (net) 131,210 125,380 Inventories (at cost) 104,100 50,310 Plant equipment (net of depreciation) 1,444,840 1,429,170 Total assets $1,844,880 $1,748,760 Liabilities and Owners Equity Accounts payable $79,330 $91,520 Notes payable 75,880 61,310 Accrued liabilities 3,030 15,240 Common stock (130,000 shares, $10 par) 1,295,390 1,301,330 Retained earnings a 391,250 279,360 Total liabilities and stockholders equity $1,844,880 $1,748,760 a Cash 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 $3,003,000 $2,673,550 Cost of goods sold a 1,531,860 1,423,760 Gross margin 1,471,140 1,249,790 Operating expenses 859,420 780,390 Income before income taxes 611,720 469,400 Income taxes (40 ) 244,688 187,760 Net income $367,032 $281,640 a Depreciation charges on the plant and equipment of $99,950 and $101,590 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 $1,681,980 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

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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

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 $34,920 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,040 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Larkspurs cash flow problems are due primarily to the companys desire to finance a $298,670 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	2021	2020
Cash	$18,060	$12,500
Notes receivable	146,670	131,400
Accounts receivable (net)	131,210	125,380
Inventories (at cost)	104,100	50,310
Plant & equipment (net of depreciation)	1,444,840	1,429,170
Total assets	$1,844,880	$1,748,760

Liabilities and Owners Equity
Accounts payable	$79,330	$91,520
Notes payable	75,880	61,310
Accrued liabilities	3,030	15,240
Common stock (130,000 shares, $10 par)	1,295,390	1,301,330
Retained earnings^a	391,250	279,360
Total liabilities and stockholders equity	$1,844,880	$1,748,760

^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	$3,003,000	$2,673,550
Cost of goods sold^a	1,531,860	1,423,760
Gross margin	1,471,140	1,249,790
Operating expenses	859,420	780,390
Income before income taxes	611,720	469,400
Income taxes (40%)	244,688	187,760
Net income	$367,032	$281,640

^aDepreciation charges on the plant and equipment of $99,950 and $101,590 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 $1,681,980 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.