Can please explain it step by step how to do this and process so I can understand. Also, where does calculation will go in the financial statements. And appropriate journal entries of those changes. Below I listed the financial sheets relating to this information.

Information:

The company decided early on in its history that its proprietary production data would be more effective if it built its own specialized production equipment. The company has earned much more than the initial outlay for its special production methods, despite the higher upfront costs for new equipment.Although the company has historically done this production in-house, a local university recently approached them to request that they provide them with equipment for producing specialty bags on their own. Due to the fact that many members of Saola's Board of Directors (and several of its major shareholders) are alumni of this university, Saola's management decided to sell the university a three machine system.

As part of the deal, Saola's management has insisted that the university also purchase a maintenance contract (which begins once the last machine is installed). In this way, Saola's engineers and machinists will be able to maintain the equipment, minimizing the risk of losing their competitive advantage. $920,000 is the total contract price for the machines and maintenance. By the end of 2022, Saola had installed both the first and third machines for which the university had paid $506,000. Saola's management team expects the final machine to be installed in January 2023, following which the maintenance contract will begin. The university will pay the balance of the contract once the last one has been installed.

Saola rounds all revenue allocation percentages to the nearest percentage point in order to ensure accuracy. Therefore, 12.333% (or 0.1233) would be rounded down to 12% (or .12). Saola will adjust the percentage for the last obligation (or the one that will be completed last) if the sum of the rounded percentages exceeds (or falls short) of 100% (or 1). When you round your percentages, if the sum doesn't equal 100% (if it gives you 99% or 101%), manually adjust the last obligation's percentage to 100%. (I'm also confused by this part, could you explain and show me how?)

Here are the instructions for calculation

Saola's management would like to know the effect of your adjustment on the following ratios:

* Profit Margin (Net Income / Net Sales)

* Current Ratio

* ROA

How to make the appropriate journal entries, if any, to reflect the installation of the machines (including any necessary adjustments to income tax expense) and the university's first payment. Assume Saola spent $184,000 on the first machine, $331,000 on the second, and $193,000 on the third. The average cost of the maintenance contract is $41,000. Saola's work building these machines has already been appropriately recorded in inventory. Make any necessary modifications to the financial statements. Include only the amount the client has paid.

3 Financial Sheets Listed Below: