{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-25T06:13:34-04:00", "answer_date": "2024-05-25 06:13:34", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1672497", "url": "\/study-help\/questions\/sage-corporation-was-formed-5-years-ago-through-a-public-1672497", "question_creation_date_js": "2024-05-25T06:13:34-04:00", "question_creation_date": "May 25, 2024 06:13 AM", "meta_title": "[Solved] Sage Corporation was formed 5 years ago t | SolutionInn", "meta_description": "Answer of - Sage Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of t | SolutionInn", "meta_keywords": "sage,corporation,formed,5,years,ago,public,subscription,common,stock,daniel,brown", "question_title_h1": " Sage Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was", "question_title": " Sage Corporation was formed 5 years ago through a public subscription", "question_title_for_js_snippet": "Sage 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 Sage and is its current president The company has been successful, but it currently is experiencing a shortage of funds On June 10, 2026, Daniel Brown approached the Topeka National Bank, asking for a 24 month extension on two $35,010 notes, which are due on June 30, 2026, and September 30, 2026 Another note of $5,990 is due on March 31,2027, but he expects no difficulty in paying this note on its due date Brown explained that Sage'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 notes payable due at march 31, 2025 are due prior to March 31, 2026 The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years Sage Corporation Balance Sheet March 31 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant equipment (net of depreciation) Total assets 2026 2025 $18,340 $12,610 148,550 132,170 131,820 124,930 105,580 49,510 1,462,770 1,410,000 $1,867,060 $1,729,220 Liabilities and Stockholders' Equity Accounts payable $78,710 $91,680 Notes payable 76,010 61,470 Accrued liabilities 20 550 8,790 Common stock (130,000 shares, $10 par) 1,307,670 1,300,320 Retained earnings 384,120 266,960 Total liabilities and stockholders' equity $1,867,060 $1,729,220 Cash, dividends were paid at the rate of $1 per share in fiscal year 2025 and $2 per share in fiscal year 2026 Sales revenue Cost of goods sold Gross margin Operating expenses Income before income taxes Income taxes (40 ) Net income Sage Corporation Income Statement For the Fiscal Years Ended March 31 2026 2025 $3,025,030 $2,697,610 1,541,260 1,422,100 1,483,770 1,275,510 855,170 784,280 628,600 491,230 251,440 196,492 $377,160 $294,738 Depreciation charges on the plant and equipment of $99,140 and $102,590 for fiscal years ended March 31, 2025 and 2026, respectively, are included in cost of goods sold (a) Compute the following items for Sage Corporation (Round answers to 2 decimal places, eg 2 25 or 2 25 ) 1 Current ratio for fiscal years 2025 and 2026 2 Acid test (quick) ratio for fiscal years 2025 and 2026 3 Inventory turnover for fiscal year 2026 Return on assets for fiscal years 2025 and 2026 (Assume total assets were $1,693,770 at 3 31 24) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2025 to 2026 Current ratio 2026 231 2 Acid test (quick) ratio 1 10 1 3 Inventory turnover 19 88 times Return on assets 5 Percent Changes Percent Increase Sales revenue Cost of goods sold Gross margin Net income 21 2025 1 97 1 1 36 1 17", "question_description": "\"image", "transcribed_text": "Sage 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 Sage and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2026, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,010 notes, which are due on June 30, 2026, and September 30, 2026. Another note of $5,990 is due on March 31,2027, but he expects no difficulty in paying this note on its due date. Brown explained that Sage'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 notes payable due at march 31, 2025 are due prior to March 31, 2026. The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years. Sage Corporation Balance Sheet March 31 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) Total assets 2026 2025 $18,340 $12,610 148,550 132,170 131,820 124,930 105,580 49,510 1,462,770 1,410,000 $1,867,060 $1,729,220 Liabilities and Stockholders' Equity Accounts payable $78,710 $91,680 Notes payable 76,010 61,470 Accrued liabilities 20.550 8,790 Common stock (130,000 shares, $10 par) 1,307,670 1,300,320 Retained earnings 384,120 266,960 Total liabilities and stockholders' equity $1,867,060 $1,729,220 \"Cash, dividends were paid at the rate of $1 per share in fiscal year 2025 and $2 per share in fiscal year 2026. Sales revenue Cost of goods sold\" Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income Sage Corporation Income Statement For the Fiscal Years Ended March 31 2026 2025 $3,025,030 $2,697,610 1,541,260 1,422,100 1,483,770 1,275,510 855,170 784,280 628,600 491,230 251,440 196,492 $377,160 $294,738 \"Depreciation charges on the plant and equipment of $99,140 and $102,590 for fiscal years ended March 31, 2025 and 2026, respectively, are included in cost of goods sold. (a) Compute the following items for Sage Corporation. (Round answers to 2 decimal places, eg. 2.25 or 2.25%) 1 Current ratio for fiscal years 2025 and 2026. 2. Acid-test (quick) ratio for fiscal years 2025 and 2026. 3. Inventory turnover for fiscal year 2026. Return on assets for fiscal years 2025 and 2026. (Assume total assets were $1,693,770 at 3\/31\/24) Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2025 to 2026. Current ratio 2026 231 2. Acid-test (quick) ratio 1.10 :1 3. Inventory turnover 19.88 times Return on assets 5. Percent Changes Percent Increase Sales revenue Cost of goods sold Gross margin Net income 21 % % % 2025 1.97 :1 1.36 :1 17", "related_book": { "title": "Intermediate Accounting", "isbn": "1119503663, 1119571480, 1-119-50368-2, 111950368X, 978-1119503668", "edition": "17th edition", "authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1978.jpg", "uri": "\/textbooks\/intermediate-accounting-17th-edition-1978", "see_more_uri": "\/textbooks\/business-organizational-behavior-14" }, "free_related_book": { "isbn": "? B0C9SLG2FQ", "uri": "\/textbooks\/a-chance-to-change-9798988557401", "name": "A Chance To Change", "edition": "" }, "question_posted": "2024-05-25 06:13:34", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/environmental-economics\/should-us-national-forests-become-privatized-sold-to-private-owners-1279572", "description": "Should U.S. national forests become privatized (sold to private owners)? 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