Monty 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 Monty 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 $35,020 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 Monty's cash flow problems are due primarily to the company's desire to finance a $302,480 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. Monty Corporation Balance Sheet Assets Cash March 31 2021 2020 $18,370 $12,530 148,910 132.190 Monty Corporation Balance Sheet March 31 Assets 2021 2020 Cash Notes receivable $18,370 $12,530 148,910 132,190 Accounts receivable (net) 131,240 125,020 Inventories (at cost) 105,170 50,210 Plant & equipment (net of depreciation) 1,447,150 1,413,460 Total assets $1,850,840 $1,733,410 Liabilities and Owners' Equity Accounts payable $78,640 $91,420 76.080 61.660 Accounts payable Notes payable $78,640 $91,420 76,080 61.660 Accrued liabilities 8,810 8,340 Common stock (130,000 shares, $10 par) 1,310,790 1,300,030 Retained earnings 376,520 271,960 Total liabilities and stockholders' equity $1,850,840 $1,733,410 *Cash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. Monty Corporation Income Statement For the Fiscal Years Ended March 31 2021 2020 "Cash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. Sales revenue Cost of goods sold* Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income: Monty Corporation Income Statement For the Fiscal Years Ended March 31 2021 2020 $3.001,980 $2.700,330 1,538,400 1,427.160 1,463,580 1,273,170 864,890 787,400 598,690 485,770 239,476 194,308 $359,214 $291,462 Question 3 of 6 Income taxes (40%) Net income -/1 E 239,476 194,308 $359,214 $291,462 Depreciation charges on the plant and equipment of $100,330 and $101,800 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Monty 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. 5. Return on assets for fiscal years 2020 and 2021. (Assume total assets were $1,694,120 at 3/31/19) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2020 to 2021 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 4. Return on assets 2020 :1 :1 2021 :1 :1 times % % 5. Percent Changes Percent Increase: % Sales revenue 5. Percent Changes Percent Increase Sales revenue % Cost of goods sold Gross margin Net income after taxes % % do do % do