Salvador 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 salvage value of $52,000. Land is not depreciated. The depreciation for the equipment, all of which was purchased at the same time the plant constructed, is calculated using declining balance at 15 percent. Salvador currently has two outstanding loans: one for $58,000 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 heavy 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 inventory was damaged. Due to inadequate insurance, this unusual and unexpected event cost the company $94,000, 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 unexpected event, such as the flood, without threatening its existence as a viable business. the financial ratios to indicate whether Salvador Industries can manage an unusual and unexpected event, such as the flood, without threatening its existence as a viable business. Select all that apply. A. The return-on-assets ratio is low, which means a loss from an extraordinary event would take a large portion of its after-tax income B. The current and acid test ratios are high, which mean the company has considerable security in meeting obligations and losses from extraordinary events. C. The return-on-assets ratio is high, which means a loss from an extraordinary event would take only a small portion of its pre-tax income. D. The current and acid test ratios are both low, which means the company may not have the assets to cover obligations or losses from extraordinary events. E. The equity ratio is slightly low, indicating reliance on debt financing, which makes it harder to cover a loss from an extraordinary event. F. The equity ratio is very high, indicating the company does not rely on debt financing, which makes it easy to cover a loss from an extraordinary event