Susan Bart takes out a loan of $100,000 at 5% yearly interest to start a small landscaping firm. At the end of 2020, her company's first year, she calculates that they have charged customers for work completed $310,000 in total. Of this, $260,000 has been collected, while $50,000 still remains to be paid.

Ms. Bart collects a monthly salary of $6,000. She also employs a head landscaper at a yearly salary of $28,000, as well as two assistant landscapers who each earn an hourly wage of $14/hr., working 40 hours per week for a total of 36 weeks per year.

Benefits for Ms. Bart and her employees totaled $25,800 in 2020. In addition, she paid $22,000 in employment taxes.

Ms. Bart leases two trucks for the business, each at $2,000/month. In addition, she purchased a total of $35,000 of new depreciable equipment. Estimated depreciation on this equipment over the year was $9,200. The firm also purchased a total of $27,000 worth of materials (including mulch, herbicides, and hardscaping components) for use in its various landscaping jobs, all of which was used. Additional miscellaneous operating expenses, including gas, totaled $9000. The firm also purchased $1,100 worth of local advertising.

Ms. Barts tax rate was 21% during 2020.

a. Prepare a 2020 income statement for Susan Barts firm (assume Bart uses accrual accounting, not cash accounting).

b. Evaluate her financial performance over the year using ratio analysis