Problem 24-3 Larkspur 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 Larkspur 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 Larkspur'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 LARKSPUR CORPORATION BALANCE SHEET MARCH 31 2018 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) 2017 $12,430 132,070 126,320 50,330 1,453,730 1,407,520 $1,857,370 $1,728,670 18,160 148,880 132,650 103,950 Total assets