Methodology: Based on the above information the consulting group will conduct ratio analysis for the following ratios: o Current ratio Days Sales Outstanding Times's interest earned Profit margin 0 Days in inventory Return on assets Cash current debt coverage ratioAppendix 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 Accote 2018 2018 Cash $ 45,000 $ 22,000 Accounts receivable 80,000 45,000 Merchandise inventory 65,000 70,000 Prepaid Expenses 55,000 30,000 Property, plant, and equipment 270.000 250.000 Total assets 515.000 S 417.000 Liabilities and shareholders' equity Accounts payable 20,000 $ 30,000 Short-term bank loan payable 70,000 57,000 Bonds payable 130,000 160,000 Common shares 170,000 95,000 Retained earnings 125.000 75.000 Total liabilities and shareholders' equity $ 515,000 $ 417.000 Waterloo Corporation Income Statement Year Ended December 31, 2019 Net sales 600,000 Cost of goods sold 300.000 Gross profit 300,000 Expenses Operating expenses 140,000 Amortization expense 25,000 Interest expense 15.000 Total expenses 180.000 Profit before Income tax 120,000 Income tax expense 10.000 Profit 80 000 Additional information for 2019: Cash dividends declared and paid. 30,000 2 Net cash provided by operating activities in 2019. 53,000