Sarasota 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 Sarasota 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 $34,740 notes, which are due on June 30, 2026, and September 30, 2026. Another note of $6,020 is due on March 31, 2027, but he expects no difficulty in paying this note on its due date. Brown explained that Sarasota's cash flow problems are due primarily to the company's desire to finance a $297,240 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. Sarasota Corporation Balance Sheet March 31 Assets Cash Notes receivable 2026 2025 $18,040 $12,400 147,260 131,030 Accounts receivable (net) 132,340 125,790 Inventories (at cost) 105,650 49,690 Plant & equipment (net of depreciation) 1,445,350 1,431,190 Total assets $1,848,640 $1,750,100 Liabilities and Stockholders' Equity Accounts payable $79,080 $91,660 Notes payable 75,500 61,330 Accrued liabilities 16,490 4,798 Common stock (130,000 shares, $10 par) 1,290,130 1,296,340 Retained earningsa 387,440 295,972 Total liabilities and stockholders' equity $1,848,640 $1,750,100 *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 solda Gross margin Operating expenses Income before income taxes Income taxes (40%) Net income Sarasota Corporation Income Statement For the Fiscal Years Ended March 31 2026 2025 $2,971,790 $2,699,340 1,533,470 1,433,480 1,438,320 1,265,860 852,540 777,590 585,780 488,270 234,312 195,308 $351,468 $292,962 *Depreciation charges on the plant and equipment of $100,490 and $102,670 for fiscal years ended March 31, 2025 and 2026, respectively, are included in cost of goods sold. (a) Compute the following items for Sarasota Corporation. (Round answers to 2 decimal places, e.g. 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. 4. Return on assets for fiscal years 2025 and 2026. (Assume total assets were $1,673,770 at 3/31/24.) 5. Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2025 to 2026. 1. Current ratio 2. Acid-test (quick) ratio 3. Inventory turnover 4. Return on assets 2026 5. Percent Changes Percent Increase Sales revenue Cost of goods sold Gross margin Net income :1 :1 times do % % do % % 2025 :1 :1 %