Question 3 0.73/1 and View Policies Show Attempt History Current Attempt in Progress | Con Swifty 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 Swifty 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 $35,140 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 Swifty's cash flow problems are due primarily to the company's desire to finance a $301,430 plant expansion over the next 2 fiscal years through internally generated funds. Support The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years. Swifty Corporation Balance Sheet March 31 Assets 2020 Cash $18,340 $12,500 Notes receivable 147,090 132,010 Accounts receivable (net) 125,250 132,350 105,410 Inventories (at cost) 49.960 Blanconimento deletion 142 Plant & equipment (net of depreciation) 1,434,630 $1,837,820 1.411,230 $1,730,950 Total assets Liabilities and Owners' Equity Accounts payable $79.720 $91,760 Notes payable 76,270 61,120 Accrued liabilities 5,340 11.960 Common stock (130,000 shares, $10 par) 1,305,620 1.311.870 Retained earnings 370,870 254,240 Total liabilities and stockholders' equity $1,837,820 $1,730,950 Cash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021 Swifty Corporation Income Statement For the Fiscal Years Ended March 31 2021 2020 Sales revenue $2.712,300 Cost of goods sold $3,028,020 1,534,160 1493.860 1,416,420 Grossmansin 1.295.880 139,100 1.4710,420 Gross margin 1,493,860 1,295,880 Operating expenses 861,150 775,180 Income before income taxes 632.710 520,700 Income taxes (40%) 253,084 208,280 Net income $379,626 $312,420 Depreciation charges on the plant and equipment of $99,460 and $102,440 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold. Compute the following items for Swifty Corporation. (Round answers to 2 decimal places, es. 2.25 or 225%) 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 $1,672,060 at 3/31/19) 5. Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2020 to 2021. 2020 2021 2020 2021 1. Current ratio 2. Acid-test (quick) ratio 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 eTextbook and Media
