Cheyenne Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of

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Cheyenne 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 Cheyenne 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
$34,970 notes, which are due on June 30, 2021, and September
30, 2021. Another note of $5,970 is due on March 31, 2022, but
he expects no difficulty in paying this note on its due date. Brown
explained that Cheyenne’s cash flow problems are due primarily
to the company’s desire to finance a $300,080 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.
Cheyenne Corporation
Balance Sheet
March 31
2021
2020
Cash
Notes receivable
Accounts receivable (net)
Inventories (at cost)
Plant & equipment (net of depreciation)
Total assets
Accounts payable
Notes payable
Accrued liabilities
Common stock (130,000 shares, $10 par)
Retained earningsa
Total liabilities and stockholders’
equity
Cheyenne Corporation
Income Statement
For the Fiscal Years Ended March 31
2021
2020
Sales revenue
Cost of goods solda
Gross margin
Operating expenses
Income before income taxes
Income taxes (40%)
Net income
(a)

Compute the following items
for Cheyenne Corporation. (Round answers
to 2 decimal places, e.g. 2.25 or 2.25%.)
2020
2021
Current ratio
enter the ratio rounded to 2 decimal places
enter the ratio rounded to 2 decimal places
Acid-test (quick) ratio
enter the ratio rounded to 2 decimal places
enter the ratio rounded to 2 decimal places
Inventory turnover
enter the inventory turnover rounded to 2 decimal places
Return on assets
enter the return on assets in percentages rounded to 2 decimal
places
enter the return on assets in percentages rounded to 2 decimal
places
Percent Changes
Percent Increase
Sales revenue
enter percentages rounded to 2 decimal places
Cost of goods sold
enter percentages rounded to 2 decimal places
Gross margin
enter percentages rounded to 2 decimal places
Net income after taxes
enter percentages rounded to 2 decimal places