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 $49,000. 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 declining balance at 15 percent Salvador currently has two outstanding loans: one for $52,000 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 $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 unexpected event, such as the flood, without threatening its existence as a viable business. Assets Current assets \begin{tabular}{lr} Cash & $356,000 \\ Accounts receivable & 2,830,000 \\ Inventories & 2,009,000 \\ Prepaid services & 166,000 \\ Total Current Assets & \\ \hline \end{tabular} Long-term assets Building Less accumulated depreciation Equipment Land Toss accumulated depreciation Current Liabilities Liabilities and Owners' Equity \begin{tabular}{ll} Accounts payable & $900,523 \\ \hline & \\ Accrued taxes & \\ Total Current Liabilities & \\ \hline \end{tabular} Long-term Liabilities Mortgage 1,205,000315,000 Total Long-Term Liabilities Total Liabilities Owners' Equity 1,970,000 Common shares Total Owners' Equity Total Liabilities and Owners' Equity Total Liabilities and Owners' Equity Now complete the income statement. (Round amounts to the nearest whole dollar. Use parentheses or a minus sign for a net loss.)