Sage 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 Sage 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 $34,660 notes, which are due on June 30, 2018, and September 30, 2018. Another note of $6,010 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Sage's cash flow problems are due primarily to the company's desire to finance a $298,840 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. SAGE CORPORATION BALANCE SHEET MARCH 31 2018 2017 Assets Cash Notes receivable Accounts receivable (net) Inventories (at cost) Plant & equipment (net of depreciation) $18,270 147,920 132,770 105,380 1,462,720 $1,867,060 $12,480 132,320 124,290 49,890 1,422,440 $1,741,420 Total assets Liabilities a Accounts payable Notes payable Accrued liabilities Common stock (130,000 shares, $10 par) Retained earnings uit $79,230 76,430 13,350 1,310,960 387,090 $1,867,060 $90,420 62,080 8,010 1,298,480 282,430 $1,741,420 Total liabilities and stockholders' equity