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, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $34,750 notes, which are due on June 30, 2018, and September 30, 2018. Another note of $5,990 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Marigold's cash flow problems are due primarily to the company's desire to finance a $299,300 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 2018 2017 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) $18,270 148,780 131,230 104,200 1,452,000 $1,854,480 $12,430 130,950 125,720 49,640 1,431,290 $1,750,030 Total assets Liabilities and Owners' Equity Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) Retained earningsa $78,690 76,200 5,420 1,307,580 386,590 $1,854,480 $91,120 61,750 19,930 1,296,530 280,700 $1,750,030 Total liabilities and stockholders' equity aCash dividends were paid at the rate of $1 per share in fiscal year 2017 and $2 per share in fiscal year 2018 MARIGOLD CORPORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2018 2017 Sales revenue Cost of goods solda Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income $3,010,800 1,535,270 1,475,530 856,650 618,880 247,552 $371,328 $2,721,120 1,423,060 1,298,060 783,860 514,200 205,680 $308,520 a Depreciation charges on the plant and equipment of $100,510 and $101,910 for fiscal years ended March 31, 2017 and 2018, respectively, are included in cost of goods sold. (a) Compute the following items for Marigold Corporation. (Round answer to 2 decimal places, eg, 2.25 or 2.25%.) (1) Current ratio for fiscal years 2017 and 2018 (2) Acid-test (quick) ratio for fiscal years 2017 and 2018 (3) Inventory turnover for fiscal year 2018 (4) Return on assets for fiscal years 2017 and 2018. (Assume total assets were $1,672,570 at 3/31/16.) (5) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2017 to 2018. 2017 2018 (1) Current ratic (2) Acid-test (quick) ratio (3) Inventory turnover (4) Return on assets 1 1 times (5) Percent Changes Percent Increase Sales revenue Cost of goods sold Gross margin Net income after taxes