imentation MINICASE pare 95 Ratio Analysis at S&S Air, Inc. Chris Guthrie was recently hired by S&S Ait, Inc. to amint the company with its financial planning and to evaluate the company's performance. Chris graduated from college five years ago with a finance degree Since then be been employed in the finance department of a Fortune 500 company S&S Air was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the company's products have received high reviews for safety and reliability. The company has a niche market in that it sella primarily to individuals who own and fly their own airplanes. The company has two models: the Burdie, which sells for $103,000, and the Eagle, which sells for $178,000 Although the company manufactures aircraft, its operations are different from commercial aircraft companies. S&S Ait builds aircraft to order. By using prefabricated parts, the company can complete the manufacture of an airplane in only five weeks. The company also receives a deponit on each order, as well as another partial payment before the order is complete In contrast, a commercial airplane may take one and one-half to two years to manufacture once the order is placed Mark and Todd have provided the following financial statements Chris has gathered the industry tation for the light airplane manufacturing industry S& SAIR, INC. , 2021 Income Statement Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (25%) Net Income Dividends Add to retained earnings $7,038,492 27,629,530 4.696,692 1.659.882 $ 3,052 388 580.078 $ 2,472,310 618,078 51.054 232 5565,000 1.289 232 Assets Current assets Cash Accounts receivable Inventory Total current assets S&S AIR, INC. 2021 BALANCE SHEET Liabilities and Equity Current liabilities $ 419,970 Accounts payable $ 854,685 674,475 Notes payable 1,951,642 988,129 Total current liabilities $ 2,806,327 $ 2,082,574 Long-term debt $ 5.100.000 Fixed assets Net plant and equipment $16,305,556 Shareholder equity Common stock $ 410.000