Problem 24-3 Monty 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 Monty 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 $34,780 notes, which are due on June 30, 2018, and September 30, 2018. Another note of $5,980 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Monty'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. MONTY CORPORATION BALANCE SHEET MARCH 31 2017 Assets Cash Notes recevable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) $18,070 146,950 132,930 105,490 1457.240 $1860.680 $12,390 132,410 126,360 49,670 1,432,610 $1,753.440 Total assets $78,990 75,820 23010 1296,050 386,810 $1,860,680 $90,140 61,750 22.600 1,294,970 283,980 $1,753,440 Accounts payeble Nates payable Accrued liabilities Common stock (130,000 shares, s10 par) Retained eamings Total liabilities and stockholders equity Cash dividends were paid at the rate of $1 per share in fiscal year 2017 and $2 per share in fiscal year 2018. MONTY CORPORATION INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31 2018 2017 Sales revenue Cost of goods sold Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income $3,009,260 1,527,200 1,482,060 866,540 615,520 246,208 $369,312 $2.713,380 1436,740 1,276,640 778,740 497.900 199,160 $298,740 "Depreciation charges on the plant and equipment of $99,730 and $103,000 for fiscal years ended March 31, 2017 and 2018, respectively, are included in cost of goods sold (a) Compute the following items for Monty Corporation. (Round answer to 2 decimal places, eg. 2.25 or 2.25%) (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 4) Retun on assets for fiscal years 2017 and 2018. (Assume total assets were $1,683,260 at 3/31/16) (5) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2017 to 2018. 2017 2018 (1) (2) (3) (4) Current ratio Acid-test (quick) ratio Iventory turnover Return on assets times (5) Percent Changes Percent Increase Sales revenue Cost of goods sold Gross margin Net income after taxes