currently has two outstanding loans: one for

$54,000

due December 31,2020 , and another one for which the next payment is due in four years.\

$98,000

, net.\ a. Complete the balance sheet and income statement, using any of the above information that is necessary.\ business.\ Salvador Industries\ Balance Sheet as of June 30, 2020\ Assets\ Current assets\ Cash\ Accounts receivable\ Inventories\ Prepaid services\ Total Current Assets\

$342,000

\

2,810,000

\

2,008,000

\ 162,000\ Long-torm assets\ Building\ Less accumulated depreciation\ Equipment\ Less accumulated depreciation\

$208,000

\ 495,000\ 545,000

Selvador Industries bought land and built its plant 20 years ago. The depreciation on the building is calculated using the straight-line method, with a life of 30 years and a salvege value of $52.000. Land is not depreciated. The depreciation for the equipment, all of which was purchased at the same time the plant was constructed, is calculated using decining balance at 15 percent. Saivador currently has two outstanding loans: one for $54,000 due December 31,2020 , and another one for which the next payment is due in four years. During April 2020, there was a flood in the building because a nearby river overflowed its banks after unusually hasvy rains, Pumping out the water and cleaning up the basement and the first floor of the building took a week. Manufacturing was suspended during this period and some invembry was damaged. Due to inadequate insurance, ithis unusual and unexpected event cost the company $98,000, net. a. Complete the balance sheet and income statement, using any of the above information that is necessary. b. Show how information from financial ratios can indicate whether Salvador Industries can manage an unusual and unexpocted event, Buch as the fibod, without threatering its exisicnce as a vable business. First, complete the balance sheet. Start by completing the assets portion and then the liablities and owners' equity portions. (Round smoums to the nearest whole dollar.)