Pharoah Corporation was formed five years ago through an initial public offering (IPO) of common shares. Daniel Brown, who owns 15% of the common shares, was one of the organizers of Pharoah and is its current president. The company has been successful, but it is currently experiencing a shortage of funds. On June 10, 2020, Daniel Brown approached the Hibernia Bank, asking for a 24-month extension on two $34,900 notes, which are due on June 30, 2020, and September 30, 2020. Another note for $7,100 is due on March 31, 2021, but he expects no difficulty in paying this note on its due date. Brown explained that Pharoahs cash flow problems are due primarily to the companys desire to finance a $304,000 plant expansion spent evenly over the next two fiscal years through internally generated funds. The plant expansion will be used in operations following the completion of the construction in 2023. The commercial loan officer of Hibernia Bank requested financial reports for the past two fiscal years. These reports are reproduced below.

Note 1: Cash dividends were paid at the rate of $1 per share in fiscal year 2019 and $2 per share in fiscal year 2020.

Note 2: Depreciation charges on the plant and equipment of $106,000 and $108,650 for fiscal years ended March 31, 2019 and 2020, respectively, are included in cost of goods sold. Additional information:

		2020		2019
1. Cash flows from operating activities		$459,000		$350,000
2. Capital expenditures for the year		128,000		110,000

Compute the following items for Pharoah Corporation.

Free cash flow to operating cash flows for fiscal years 2019 and 2020. (Round answers to 1 decimal places, e.g. 15.2%.)

PHAROAH CORPORATION Statement of Financial Position March 31 Assets 2020 2019 Cash $19,040 $13,100 Notes receivable 148,360 141,200 Accounts receivable (net) 132,720 117,900 Inventories (at cost) 107,560 51,200 Plant and equipment (net of depreciation) 1,462,400 1,492,000 Total assets $1,870,080 $1,815,400 Equity and Liabilities Share capital-common (130,000 shares issued) $1,300,000 $1,300,000 Retained earnings (note 1) 390,720 278,000 Accrued liabilities 9,280 5,960 Notes payable (current) 76,900 62,240 Accounts payable 93,180 169,200 Total equity and liabilities $1,870,080 $1,815,400 PHAROAH CORPORATION Income Statement For the Fiscal Years Ended March 31 2020 2019 Sales $3,012,600 $2,707,000 Cost of goods sold (note 2) 1,535,800 1,431,000 Gross margin $1,476,800 $1,276,000 Operating expenses 890,000 784,000 Income before income tax $586,800 $492,000 Income tax (30%) 176,040 147,600 Net income $410,760 $344,400