Appendix Two (Benchmarking studies) Objective: To conduct ratio analysis of a comparable company (Waterloo Corporation) and compare with that of the industry. Waterloo Corporation Comparative Statements of Financial Position 31-Dec-19 Assets Cash Accounts receivable Merchandise inventory Prepaid Expenses Property, plant, and equipment Total assets 2019 45,000 $ 60,000 60,000 50,000 270.000 485.000 2018 25,000 50,000 70,000 30,000 250.000 425.000 $ Liabilities and shareholders' equity Accounts payable Short-term bank loan payable Bonds payable Common shares Retained earnings Total liabilities and shareholders' equity 20,000 $ 65,000 120,000 170,000 115.000 490,000 $ 30,000 65,000 160,000 95,000 75.000 425.000 $ Waterloo Corporation Income Statement Year Ended December 31, 2019 $ 400,000 230.000 170,000 $ Net sales Cost of goods sold Gross profit Expenses Operating expenses === Amortization expense Interest expense Total expenses Profit before income tax Income tax expense Profit 40,000 22,000 11.000 73,000 97,000 27.000 70.000 $ Additional information for 2019: 1 Cash dividends declared and paid. 2 Net cash provided by operating activities in 2019 30,000 62.000