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3. (8 points) H2O Corporation is a wholesaler of scuba gear. During 2022, H2O expanded its retail business by adding over 50 dive shops. The

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3. (8 points) H2O Corporation is a wholesaler of scuba gear. During 2022, H2O expanded its retail business by adding over 50 dive shops. The following information is obtained from the comparative financial statements included in the company's 2022 annual report: 1. Using the information provided above, compute the following for 2004 and 2003 : 2. Comment briefly on the company's solvency between 2021 and 2022 based on your ratio calculations in part 1. 3. Using the information provided above, compute the following for the years indicated below: A. Profit Margin \% 2022 B. Retum on Assets 2022 4. (6 points) Frado Company provides you with following information related to payroll transactions for the current month. The numbers below are for the all of the employees combined (there are 10 employees). Prepare journal entries to record the transactions for the current month. a. Record the May payroll using the payroll register information given above. Remember to record Social Security and Medicare withholdings (note that the Social Security limit has not been reached yet). b. Recorded the employer's payroll taxes resulting from the May payroll. The company has a state unemployment tax rate to 5.4% of the first $7,000 paid each employee and a federal unemployment tax rate of 0.8% of the first $7,000 paid each employee. (note that the federal and state unemployment limits have not been reached yet)

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