Problem 24-03 a Marin 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 Marin 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 $35,010 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,990 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Marin's cash flow problems are due primarily to the company's desire to finance a $299,860 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. Marin Corporation Balance Sheet March 31 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) Total assets 2021 $18,340 148,550 131,820 105,580 1,462,770 $1,867,060 2020 $12,610 132,170 124,930 49,510 1,410,000 $1,729,220 Liabilities and Owners' Equity Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) Retained earnings Total liabilities and stockholders' equity $78,710 76,010 20,550 1,307,670 384,120 $1,867,060 $91,680 61,470 2,050 1,300,320 273,700 $1,729,220 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 Marin Corporation Income Statement For the Fiscal Years Ended March 31 2021 $3,025,030 1,541,260 1,483,770 855,170 628,600 251,440 $377,160 2020 $2,697,610 1,422,100 1,275,510 784,280 491,230 196,492 $294,738 Depreciation charges on the plant and equipment of $99,140 and $102,590 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. (a) Compute the following items for Marin Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.) 1. 2. 3. Current ratio for fiscal years 2020 and 2021. Acid-test (quick) ratio for fiscal years 2020 and 2021. Inventory turnover for fiscal year 2021. Return on assets for fiscal years 2020 and 2021. (Assume total assets were $1,693,770 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. 4. 2020 2021 1. Current ratio 2. 3. 4. Acid-test (quick) ratio Inventory turnover Return on assets times 5. Percent Increase D. Percent Changes Sales revenue Cost of goods sold Gross margin Net income after taxes