Sunland 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 Sunland 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 $34,930 notes, which are due on June 30, 2018, and September 30, 2018. Another note of $5,940 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Sunland's cash flow problems are due primarily to the company's desire to finance a $299,490 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 SUNLAND CORPORATION BALANCE SHEET MARCH 31 2018 2017 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) $18,210 148,520 131,030 105,670 1,463,200 $1,866,630 $12,550 131,480 124,980 50,450 1,431,100 $1,750,560 Total assets Liabilities and Owners' Equit Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) Retained earnings $78,850 75,730 16,310 1,308,430 387,310 $1,866,630 $90,930 61,460 20,980 1,297,370 279,820 $1,750,560 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