Give your recommendation about how the management of Waterton might improve the financial performance in 2020 versus 2019 based on your initial budget projections for 2020 (3-5 sentences minimum). What is going to happen in 2020 based on what you see in your projections? Think in terms of how management might specifically address the trends in its revenue and expenses in order to increase net income.

% % of Total Revenues of Total Revenues of Total Difference Revenues 2019 vs. 2018 2020 2019 2018 Water Sales $ 1,117,200 85% $ 1,064,000 84% $ 1,200,000 86% $ (136,000) Late Fees $ 78,540 6% $ 77,000 6% $ 68,000 5% $ 9,000 Hydrant fees 122,010 9% $ 124,500 10% $ 122,000 9% $ 2,500 Total Revenue $ 1,317,750 100% $ 1,265,500 100% $ 1,390,000 100% $(124,500) Cost of water sold 415,290 32% 381,000 30% 278,000 20% 103,000 Payroll expense 690,652.50 52% $ 648,500.00 51% $ 450,000.00 32% $ 198,500.00 Overhead expense 248,939.90 19% $ 262,042.00 21% $ 200,000.00 14% $ 62,042.00 Miscellaneous expense 198,066.00 15% $ 66,022.00 5% $ 78,000.00 6% $ (11,978.00) Total Expenses $ $ 1,552,948 1,552,948 11 118% $ 1,357,564 107% $ 1,006,000 72% $ 351,564 Total Income (loss) (235,198) -18% $ (92,064) -7% $ 384,000 28% $ (476,064) Customers 28,832 27,200 25,000 2,200 WATER sales per customer 38.75 $ 39.12 $ 48.00 $ (8.88)