Oriole Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who izers of Oriole 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 $35,220 notes, which are due on June 30, 2018, and September 30, 2018. Another note of $5,940 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Oriole's cash flow problems are due primarily to the company's desire to finance a $297,590 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. ORIOLE CORPORATION BALANCE SHEET MARCH 31 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) Total assets 2018 $18,160 148,880 132,650 103,950 1,453,730 $1,857,370 2017 $12,430 132,070 126,320 50,330 1,407,520 $1,728,670 Liabilities and Owners' Equity Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) Retained earningsa Total liabilities and stockholders' equity $79,000 75,240 25,590 1,293,340 384,200 $1,857,370 $91,850 61,680 5,430 1,287,570 282,140 $1,728,670 aCash dividends were paid at the rate of $1 per share in fiscal year 2017 and $2 per share in fiscal year 2018. ORIOLE CORPORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2018 Sales revenue Cost of goods solda Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income $2,976,520 1,528,250 1,448,270 855,760 592,510 237,004 $355,506 2017 $2,716,450 1,412,290 1,304,160 787,450 516,710 206,684 $310,026 Depreciation charges on the plant and equipment of $100,100 and $102,740 for fiscal years ended March 31, 2017 and 2018, respectively, are included in cost of goods sold. (a) Compute the following items for Oriole Corporation. (Round answer to 2 decimal places, e.g. 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 $1,694,290 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 ratio 2.021 :1 2.24:1 (2) Acid-test (quick) ratio 1.70:1 1.67:1 (3) Inventory turnover 38.59 times (4) Return on assets 17.93% 19.14% (5) Percent Changes Percent Increase Sales revenue Cost of goods sold Gross margin Net income after taxes