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Splish Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one
Splish 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 Splish 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 $34,740 notes, which are due on June 30,2021 , and September 30,2021 . Another note of $6,020 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Splish'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 commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years. "Depreciation charges on the plant and equipment of $100,490 and $102,670 for fiscal years ended March 31,2020 and 2021 respectively, are included in cost of goods sold. (a) Compute the following items for Splish Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.) 1. Current ratio for fiscal years 2020 and 2021 2. Acid-test (quick) ratio for fiscal years 2020 and 2021. 3. Inventory tumover for fiscal year 2021. 4. Return on assets for fiscal years 2020 and 2021 . (Assume total assets were $1,673,770 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
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