Pharoah 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 Pharoah 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 $34,780 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,980 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Pharoah's cash flow problems are due primarily to the company's desire to finance a $300,880 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. Pharoah Corporation Balance Sheet March 31 2020 Assets Cash 2021 $18,070 $12,390 Notes receivable 146,950 132,410 Accounts receivable (net) 132,930 126,360 Inventories (at cost) 105,490 49,670 Plant & equipment (net of depreciation) 1,457,240 1,432,610 Total assets $1,860,680 $1,753,440 Liabilities and Owners' Equity Accounts payable $78,990 $90,140 Notes payable 75,540 61,750 Accrued liabilities 23,290 22,600 Common stock (130,000 shares, $10 par) 1,296,050 1,294,970 Retained earningsa 386,810 283,980 Total liabilities and stockholders' equity $1,860,680 $1,753,440 aCash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021. Pharoah Corporation Income Statement For the Fiscal Years Ended March 31 2021 Sales revenue $3,009,260 $2,713,380 Cost of goods solda 1,527,200 1,436,740 Gross margin 1,482,060 1,276,640 Operating expenses 866,540 778,740 Income before income taxes 615,520 497,900 Income taxes (40%) 246,208 199,160 Net income $369,312 $298,740 "Depreciation charges on the plant and equipment of $99,730 and $103,000 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Pharoah 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 $1,683,260 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. 2020 2021 1. Current ratio :1 :1 2. Acid-test (quick) ratio :1 :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 % % % % 2020