P24-3

ch of them (1) Revenue test. e segments are are portable the based on the Operating profit loss) test. Identifiable assetstest - Prepare the necessary discer S 24-3 ,0) EXCEL GROUPWODY ago through a public sub organizers of Bradburn and is its n ed by GAAP. Computations and Addit s tack Daniel ORK (Ratio Computations and Additional Analysis) Bradburn Corporation was formed ption of common stock. Daniel Brown, who owns 15% of the common stock, was one of the of funds. On June 10, 2018 is current president. The company has been successful but it currently is experiencing a shortage . 2018, Daniel R el Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,000 2018 and September 30, 2018 Another note of Shoo is due on March 31, 2019, but the expects no pany's desire to finance on its due date. Brown explained that Bradburn's cash flow problems are due primarily to the com- 0,000 plant expansion over the next 2 fiscal years through internally generated funds. The commercial loan office Na Rank e d the following financial reports for the last e sts for the last 2 fiscal years, potes, which are due onun 30, 2016. Another difficulty in paying this note on its due date. Brown explain BRADBURN CORPORATION BALANCE SHEET MARCH 31 2017 $ 120 148.000 1310 Notes receivable Accounts receivable (net) Inventaries (at cost) Plant & equipment (net of depreciation) Total assets 1.449.000 $ 12.00 $1,700.500 Libilities and Stockholders' Equity Accounts payable $ 79.000 $ 91.000 Notes payable 76.00 61.500 Accrued liabilities 9 Common stock (130,000 shares, S10 par) 1,300,000 1.100.000 Retained earnings 24 22.000 Total liabilities and stockholders' equity 1.852,000 51240 Cash dividends were paid at the rate of S1 per shume inal year 2017 and 52 per share in fiscal year 2015 BRADBURN CORPORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2018 2017 1000 52.200.000 1.425.000 Sales revenue Cost of goods sold" Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income 1,500,000 1.420.000 860,000 125.000 20.000 495.000 610.000 244.000 16.000 Depreciation charges on the plant and equipment of $100,000 and $102,500 for fiscal years ended March 31, 2017 and 2015, respectively, are included in cost of goods sold Instructions (a) Compute the following items for Bradburn Corporation (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