Show relevant computation for the following:

1. Determine the profitability of each branch.

2. Which Branch is more liquid and stable?

A simplified and Condensed financial statements of SnR Company's two branches. D Branch C Branch 4,300,000 3,000,000 1 Year's Statement of Income: Sales Costs and Expenses: Cost of Sales S&A Expenses Interest Expense Income Tax Total Profit 2,800,000 483,000 100,000 275,000 3,658,000 642,000 1,400,000 697,000 200,000 211,000 2,508,000 492,000 150,000 300,000 750,000 4,800,000 6,000,000 Year-end Statement of Financial Position: Cash and Cash Equivalents 300,000 Accounts Receivable, net 500,000 Merchandise Inventory 1,200,000 Property, Plant & Equipment, net 4,000,000 Total 6,000,000 Accounts Payable 750,000 Income Tax Payable 250,000 Mortgage Payable (10%) 1,000,000 Common Stock 2,000,000 Retained Earnings 2,000,000 Total 6,000,000 259,000 241,000 2,000,000 2,000,000 1,500,000 6,000,000 Assume that the balances in asset and equity accounts at year-end approximate the average balances during the period. The income tax rate is 30 percent