SECTION IV 15 Points Belton Industries desires to have an independent consultant evaluate their financial results for the years 2018 and 2019. Belton's CFO has provided you with a comparative Balance Sheet and Income Statement as shown below. 2018 Belton Industries Inc. Balance Sheets December 31, 2018 and 2019 in thous.) 2019 Assets: Cash... $ 50,000 Accounts receivable (net) 28,000 Merchandise inventory. 110,000 Supplies ............. 7,000 Long-term investments. 220,000 Plant assets (net) 555,000 Total assets...... $970,000 Liabilities and Equity: Accounts Payable ...... $ 140,000 Salaries Payable....... 50,000 Long-term liabilities ... 225,000 Common stock ........ 300,000 Retained earnings... 255,000 Total liabilities and equity... S970,000 $ 120,000 98,000 160,000 12,000 100,000 410,000 $900,000 $ 75,000 45,000 255,000 400,000 125.000 $900,000 Belton Industries Inc. Income Statement December 31, 2018 and 2019 (in thous) Sales. Cost of Goods Sold Gross Profit......... SG&A Expenses..... Net Income Earnings Per Share..... 2019 $575,000 460,000 115,000 70,000 $45,000 $1.20 2018 $905,000 724.000 181,000 75.000 $106.000 $2.23 Belton has requested that you analyze their financial statements. You should provide a financial analysis along with interpretations or comments about the financial results (show all your work) 1. Liquidity - provide your analysis of Belton's liquidity by calculating the current ratio for both years. What are your thoughts about their liquidity? 2. Percentage change in sales from 2018 to 2019 - comment about the change 3. Net Income return on Sales percent for both 2018 and 2019 - comment about the about the change