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.

Calculate the following ratios for 2020 and indicate whether the ratio is a liquidity, solvency, or a profitability ratio.

Comment your findings.

WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statements For the Year Ending December 31 2020 2019 Sales $5,554,214 $4,964,400 Less: Cost of goods sold 3,147,800 2,818,600 Gross profit 2,406,414 2,145,800 Operating expenses Advertising 50,400 48,400 Insurance 397,900 397,900 Salaries and wages 588,600 558,600 Depreciation 72,500 63,500 Other operating expenses 21,200 18,483 Total operating expenses 1,130,600 1,086,883 Income from operations 1,275,814 1,058,917 Other income Gain on sale of equipment 18,000 Other expenses Interest expense (12,100) Income before income tax 1,281,714 1,058,917 Income tax expense 384,514 317,675 Net income $897,200 $741,242 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,.. 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 caleulation) Type (1) Asset turnover ratio times . (2) Accounts receivable turnover ratio times (3) Average collection period days (4) Current ratio : 1 (5) Debt to assets ratio . (6) Earnings per share + $ (7) Profit margin (9) Return on assets ratio . (9) Return on common stockholders' equity ratio mo + times (10) Times interest earned ratio Comment on your findings. Liquidity : The company's liquidity is The company's solvency is very Solvency Profitability. The company's profitability is Overall : By all measures the company appears to be both financially