The comparative balance sheets of Waterways Corporation's 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 $836,797 $746,681 Accounts receivable 680.750 542,685 Work in process 702,159 Inventory 16,766 7,500 Prepaid expenses 76,550 42,590 Total current assets 2,313,022 1,339,456 Property, plant, and equipment Land 300,000 300,000 Buildings 450,000 450,000 Equipment 929,400 800,200 Furnishings 40,416 40,416 Accumulated depreciation (482,523) (485,204) Total property, plant, and equipment 1,237,293 1,105,412 Total assets $3,550,315 $2,444,868 Liabilities and Stockholders' Equity Current liabilities Accounts payable $157,095 $128,360 Income taxes payable 101,344 79,989 Wages payable 4,517 1,984 Interest payable 1,187 O eyPLUS Assignments Question 1 of 1 > $128.360 79,989 1.984 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Wages payable Interest payable Other current liabilities Revolving bank loan payable Total current liabilities Long-term liabilities Note payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $157,095 101,344 4,517 1.187 14,515 15,000 293,658 15 246 225.579 140,000 433,658 225,579 1.250,000 1,866,657 3,116,657 $3,550,315 1,250,000 969,289 2.219,289 $2,444,868 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statements For the Year Ending December 31 2020 2019 Sales $5,536,077 $4,957,266 Less: Cost of goods sold 3.132.777 2,807,316 Gross profit 2,403,300 2.149,950 Operating expenses Advertising 50,000 48,000 Insurance 400,000 400.000 Salaries and wages 584,640 554,640 Depreciation 71,319 62,319 Other operating expenses 21,200 18,476 Total operating expenses 1,127.159 1,083,435 + WileyPLUS Assignments Question 1 of 1 2.403,300 2.149.950 48000 400 000 Gross profit Operating expenses Advertising Insurance Salaries and wages Depreciation Other operating expenses Total operating expenses Income from operations Other income Gain on sale of equipment Other expenses Interest expense Income before income tax Income tax expense Net income 50.000 400.000 584 640 71.319 21,200 1,127.159 1.276,141 554,640 62.319 18.476 1,083,435 1.066,515 18.000 (12,187) 1.281,954 384,586 $897,368 1,066.515 319,955 $746,560 (a) Prepare a horizontal analysis of the income statement using 2019 as the base year. (Do not leave any answer field blank. Enter o for amounts. Round percentage values to 1 decimal place, e.g. 52.7%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement 2020 2019 Change . Sales $5,536,077 $4,957,266 $ Less: Cost of goods sold 3.132,777 2,807,316 Gross profit 2.403,300 2.149.950 assessment education wiley.com + a WileyPLUS Assignments Question 1 of 1 - /1 E WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement 2020 2019 Change Per ales $5,536,077 $4,957.266 $ ess: Cost of oods sold 3.132,777 2,807,316 Gross profit 2.403,300 2.149,950 Operating xpenses Advertising 50,000 48,000 Insurance 400,000 400,000 Salaries and wages 584,640 554,640 71,319 62,319 21,200 18.476 1,127.159 1,083,435 1.276,141 1,066,515 Depreciation Other operating expenses otal operating xpenses ncome from perations Other income Gain on sale of equipment Other xpenses Interest expense ncome before ncome tax 18,000 (12,187) 1.281,954 1,066,515 4 WileyPLUS Assignments Question 1 of 1 21 200 18.476 1.127.159 1.083.435 1.276.141 1.066.515 18.000 operating expenses Total operating expenses Income from operations Other income Gain on sale of equipment Other expenses Interest expense Income before income tax Income tax expense (12,187) 1.281,954 1,066,515 384,586 319.955 Net income $897.368 $746,560 $ (6) Prepare a vertical analysis of the income statement for 2020. (Round percentage values to 1 decimal place, e.g. 52.7%. Enter negative amounts using either a negative sign preceding the number e.8. -45% or parentheses e.g. (45)%) WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement Amount Percent % Sales $5,536,077 % Less: Cost of goods sold 3.132.777 a WileyPLUS Assignments Question 1 of 1 ./1 III Amount Percent Sales $5,536,077 X Less: Cost of goods sold 3,132,777 % 2,403,300 % Gross profit Operating expenses Advertising 50,000 % Insurance 400,000 % Salaries and wages 584,640 % 71,319 % 21,200 % 1,127,159 % Depreciation Other operating expenses Total operating expenses Income from operations Other income Gain on sale of equipment 1,276,141 % 18,000 96 Other expenses (12,187) % Interest expense 1,281,954 % Income before income tax % ncome tax expense 384,586 % Het income $897,368 a WileyPLUS Assignments Question 1 of 1 To assets ratio, Profit margin, Return on assets ratio Return on commodity ratio and Times interest earned ratio to 1 decimal places 15.20 15.2. Use 365 days for calculation) Asset turnover ratio Type times lccounts receivable turnover ratio times wverage collection period days Current ratio Debt to assets ratio arnings per share $ Profit margin % leturn on assets ratio % Return on common stockholders' equity ratio % imes interest earned ratio times (d) Comment on your findings. Liquidity Solvency The company's liquidity is The company's solvency is very The company's profitability is Profitability : Overall : By all measures the company appears to be both financially