Marigold 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 Marigold 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 $35,170 notes, which are due on June 30, 2021, and September 30, 2021 Another note of $6,020 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date Brown explained that Marigolds cash flow problems are due primarily to the companys desire to finance a $300,530 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 Marigold Corporation Balance Sheet March 31 Assets 2021 2020 Cash $18,020 $12,390 Notes receivable 147,950 130,690 Accounts receivable (net) 131,350 126,370 Inventories (at cost) 105,470 50,320 Plant equipment (net of depreciation) 1,461,990 1,428,660 Total assets $1,864,780 $1,748,430 Liabilities and Owners Equity Accounts payable $78,460 $91,360 Notes payable 76,360 61,490 Accrued liabilities 18,000 14,420 Common stock (130,000 shares, $10 par) 1,307,650 1,299,180 Retained earnings a 384,310 281,980 Total liabilities and stockholders equity $1,864,780 $1,748,430 a Cash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021 Marigold Corporation Income Statement For the Fiscal Years Ended March 31 2021 2020 Sales revenue $3,008,300 $2,686,200 Cost of goods sold a 1,536,610 1,416,800 Gross margin 1,471,690 1,269,400 Operating expenses 857,560 784,330 Income before income taxes 614,130 485,070 Income taxes (40 ) 245,652 194,028 Net income $368,478 $291,042 a Depreciation charges on the plant and equipment of $100,450 and $103,230 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold (a) Compute the following items for Marigold 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 $1,705,100 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 1 91 1 2 33 1 2 Acid test (quick) ratio 1 61 1 1 72 1 3 Inventory turnover times 4 Return on assets 5 Percent Changes Percent Increase Sales revenue Cost of goods sold Gross margin Net income after taxes

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Marigold Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one

Marigold 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 Marigold 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 $35,170 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,020 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Marigolds cash flow problems are due primarily to the companys desire to finance a $300,530 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.

Marigold Corporation Balance Sheet March 31
Assets	2021	2020
Cash	$18,020	$12,390
Notes receivable	147,950	130,690
Accounts receivable (net)	131,350	126,370
Inventories (at cost)	105,470	50,320
Plant & equipment (net of depreciation)	1,461,990	1,428,660
Total assets	$1,864,780	$1,748,430

Liabilities and Owners Equity
Accounts payable	$78,460	$91,360
Notes payable	76,360	61,490
Accrued liabilities	18,000	14,420
Common stock (130,000 shares, $10 par)	1,307,650	1,299,180
Retained earnings^a	384,310	281,980
Total liabilities and stockholders equity	$1,864,780	$1,748,430

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

Marigold Corporation Income Statement For the Fiscal Years Ended March 31
	2021	2020
Sales revenue	$3,008,300	$2,686,200
Cost of goods sold^a	1,536,610	1,416,800
Gross margin	1,471,690	1,269,400
Operating expenses	857,560	784,330
Income before income taxes	614,130	485,070
Income taxes (40%)	245,652	194,028
Net income	$368,478	$291,042

^aDepreciation charges on the plant and equipment of $100,450 and $103,230 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold.

(a) Compute the following items for Marigold 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 $1,705,100 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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2020 2021 1. Current ratio 1.91 :1 2.33 :1 2. Acid-test (quick) ratio 1.61 :1 1.72 :1 3. Inventory turnover times 4. Return on assets % % 5. Percent Changes Percent Increase Sales revenue % Cost of goods sold % Gross margin % Net income after taxes %