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Bradburn Corporation was formed five years ago through a public subscription of common stock. Daniel Brown, who owns $15\%$ of the common stock, was one of the organizers of Bradburn and is its current president. The corporation 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 $$35,000$ notes, which are due on June $30,2026,$ and September $30,2026.$ Another note of $$6,000$ is due on March $31,2027,$ but he expects no difficulty in paying this note on its due date. Brown explained that Bradburn$$s cash flow problems are due primarily to the company$$s desire to finance a $$300,000$ plant expansion over the next two fiscal years through internally generated funds.

$3.$ Explain whether Topeka National Bank should grant the extension on Bradburn$$s notes considering Daniel Brown$$s statement about financing the plant expansion through internally generated funds. Consider the following question to guide your response:

A$.$ Should Topeka National Bank grant the loan? Why or why not?

B$.$ Will Bradburn$$s projected operations for $2027$ generate an adequate amount of cash to finance the plant expansion and repay the loan?

C$.$ Does Bradburn need the $24-$month extension? Why or why not?

D$.$ What do the financial ratios indicate about Bradburn$$s financial structure?

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