The comparative balance sheets of Waterways Corporations Irrigation Installation Division for the years 2019 and 2020 and the income statements for the year 2019 and 2020 are presented below. Additional information: 85% of the sales for Waterways were credit sales. There are 5,000 shares outstanding for both years. This is a private corporation whose shares are not available to the public.

WATERWAYS CORPORATION-INSTALLATION DIVISION Balance Sheets December 31 Assets 2020 2019 Current assets Cash $831,600 $748,100 Accounts receivable 687,500 546,200 Work in process 703,500 Inventory 16,800 7,500 Prepaid expenses 76,600 42,700 Total current assets 2,316,000 1,344,500 Property, plant, and equipment Land 298,000 298,000 Buildings 447,000 447,000 Equipment 929,100 798,600 Furnishings 40,700 40,700 Accumulated depreciation (478,600) (487,700) Total property, plant, and equipment 1,236,200 1,096,600 Total assets $3,552,200 $2,441,100 Liabilities and Stockholders' Equity Current liabilities Accounts payable $157,400 $129,700 Income taxes payable 100,900 79,200 Wages payable 4,600 2,000 Interest payable 1,200 Other current liabilities 14,400 15,400 Revolving bank loan payable 15,100 Total current liabilities 293,600 226,300 Long-term liabilities Note payable 142,000 Total liabilities 435,600 226,300 Stockholders' equity Common stock 1,250,000 1,250,000 Retained earnings 1,866,600 964,800 Total stockholders' equity 3,116,600 2,214,800 Total liabilities and stockholders' equity $3,552,200 $2,441,100 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statements For the Year Ending December 31 2020 2019 Sales $5,522,786 $4,922,500 Less: Cost of goods sold 3,118,400 2,820,400 Gross profit 2,404,386 2,102,100 Operating expenses Advertising 49,600 47,600 Insurance 401,800 401,800 Salaries and wages 585,300 555,300 Depreciation 64,200 55,200 Other operating expenses 21,000 18,401 Total operating expenses 1,121,900 1,078,301 Income from operations 1,282,486 1,023,799 Other income Gain on sale of equipment 17,900 Other expenses Interest expense (12,100) Income before income tax 1,288,286 1,023,799 Income tax expense 386,486 307,140 Net income $901,800 $716,659 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement For the Year Ended December 31 - 2020 2019 Change Percent Sales $5,522,786 $4,922,500 600286 12.2 % Less: Cost of goods sold 3,118,400 2,820,400 298000 10.6 % Gross profit 2,404,386 2,102,100 Operating expenses Advertising 49,600 47,600 Insurance 401,800 401,800 Salaries and wages 585,300 555,300 Depreciation 64,200 55,200 Other operating expenses 21,000 18,401 Total operating expenses 1,121,900 1,078,301 Income from operations 1,282,486 1,023,799 Other income Gain on sale of equipment 17,900 Other expenses Interest expense (12,100) Income before income tax 1,288,286 1,023,799 Income tax expense 386,486 307,140 Net income $901,800 $716,659 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement Amount Percent Sales $5,522,786 Less: Cost of goods sold 3,118,400 Gross profit 2,404,386 Operating expenses Advertising 49,600 Insurance 401,800 Salaries and wages 585,300 Depreciation 64,200 Other operating expenses 21,000 Total operating expenses 1,121,900 Income from operations 1,282,486 Other income Gain on sale of equipment 17,900 Other expenses Interest expense (12,100) Income before income tax 1,288,286 Income tax expense 386,486 Net income $901,800 Calculate the following ratios for 2020 and indicate whether the ratio is a liquidity, solvency, or profitability ratio. (Round Asset turnover ratio, Accounts receivable turnover ratio, Current ratio and Earnings per share to 2 decimal places, e.g. 15.25. Round Average collection period, Debt to assets ratio, Profit margin, Return on assets ratio, Return on common stockholders' equity ratio and Times interest earned ratio to 1 decimal place, e.g. 15.2 or 15.2%. Use 365 days for calculation.) Type (1) Asset turnover ratio times times (2) Accounts receivable turnover ratio (3) Average collection period days (4) Current ratio (5) Debt to assets ratio (6) Earnings per share (7) Profit margin (8) Return on assets ratio (9) Return on common stockholders' equity ratio (10) Times interest earned ratio times (d) Comment on your findings. Liquidity : The company's liquidity is . Solvency Profitability The company's solvency is very The company's profitability is .. .. . Overall By all measures the company appears to be both financially