The comparative balance sheets of Waterways Corporation's Irrigation Installation Division for the years 2021 and 2022 and the income statements for the year 2021 and 2022 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 2022 2021 Current assets Cash $839,600 $742,900 Accounts receivable 676,600 545,200 Work in process 705,300 Inventory 16,900 7,400 Prepaid expenses 75,900 43,000 Total current assets 2,314,300 1,338,500 Property, plant, and equipment Land 302,000 302,000 Buildings 450,000 450,000 Equipment 928,100 800,800 Furnishings 40,800 40,800 Accumulated depreciation (484,300) (485,000) Total property, plant, and equipment 1,236,600 1,108,600 Total assets $3,550,900 $2,447,100 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable $158,100 $127,500 101,100 79,900 Wages payable 4,500 2,000 Interest payable 1,200 Other current liabilities 14,400 15,200 Revolving bank loan payable 15,000 Total current liabilities 294,300 224,600 Long-term liabilities Note payable 137,000 Total liabilities 431,300 224,600 Stockholders' equity Common stock 1,250,000 1,250,000 Retained earnings 1,869,600 972,500 Other income Gain on disposal of plant assets Other expenses 18,300 Interest expense (12,200) Income before income tax 1,281,571 1,089,228 Income tax expense 384,471 326,768 Net income $897,100 $762,460 Prepare a horizontal analysis of the income statement using 2021 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).) Sales WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement 2022 2021 $5,539,071 $4,950,100 Less: Cost of goods sold 3,141,800 2,782,700 Gross profit 2,397,271 2,167,400 Operating expenses Advertising 50,000 48,000 Insurance 397,300 397,300 Salaries and wages 580,400 550,400 Depreciation 73,100 64,100 Other operating expenses 21,000 18,372 Amount Percent Total operating expenses 1,121,800 1,078,172 Income from operations 1,275,471 1,089,228 Other income Gain on disposal of plant assets 18,300 Other expenses Interest expense (12,200) Income before income tax 1,281,571 1,089,228 Income tax expense Net income 384,471 326,768 $897,100 $762,460 $ Prepare a vertical analysis of the income statement for 2022. (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)%) Sales WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement Amount Percent $5,539,071 % % do 2,397,271 % Less: Cost of goods sold 3,141,800 Gross profit Operating expenses Advertising 50,000 % do 397,300 % Salaries and wages 580,400 % Insurance Depreciation 73,100 do % Other operating expenses 21,000 % Total operating expenses 1,121,800 % Income from operations Other income Gain on disposal of plant assets Other expenses Interest expense 1,275,471 % do 18,300 % (12,200) % Income before income tax 1,281,571 % Income tax expense Net income 384,471 % $897,100 % do Calculate the following ratios for 2022 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.) (1) Asset turnover (2) Accounts receivable turnover (3) Average collection period (4) Current ratio (5) Debt to assets (6) Earnings per share $ (7) Profit margin (8) Return on assets (9) Return on common stockholders' equity ratio (10) Times interest earned ratio times times days :1 % % di % % di times