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.

Cash $740,300 547,100 Accounts receivable $833,700 685,300 705,800 16,600 76,000 2,317,400 7,400 42,500 1,337,300 297,000 454,000 930,000 40,300 (482,200) 1,239,100 $3,556,500 297,000 454,000 800,000 40,300 (484,300) 1,107,000 $2,444,300 Work in process Inventory Prepaid expenses Total current assets Property, plant, and equipment Land Buildings Equipment Furnishings Accumulated depreciation Total property, plant, and equipment Total assets 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 $127,200 79,400 1,900 $ 158,700 101,300 4,400 1,200 14,500 15,000 295,100 15,400 223,900 138,000 433,100 223,900 1,250,000 1,873,400 3,123,400 $3,556,500 1,250,000 970,400 2,220,400 $2,444,300 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statements For the Year Ending December 31 2020 2019 Sales $5,571,500 $4,961,200 Less: Cost of goods sold 3,159,600 2,824,500 Gross profit 2,411,900 2,136,700 Operating expenses Advertising 49,600 47,600 Insurance 403,400 403,400 Salaries and wages 580,900 550,900 Depreciation 72,400 63,400 Other operating expenses 21,300 18,588 Total operating expenses 1,127,600 1,083,888 Income from operations 1,284,300 1,052,812 Other income Gain on sale of equipment 17,900 Other expenses Interest expense (12,200) Income before income tax 1,290,000 1,052,812 Income tax expense 387,000 315,844 Net income $903,000 $736,968 (a) 2020 2019 Change Percent Sales $5,571,500 $4,961,200 % $ Less: Cost of goods sold 3,159,600 2,824,500 % Gross profit 2,411,900 2,136,700 % Operating expenses Advertising 49,600 47,600 % Insurance 403,400 403,400 % Salaries and wages 580,900 550,900 % Depreciation 72,400 63,400 % Other operating expenses 21,300 18,588 % Total operating expenses 1,127,600 1,083,888 % Income from operations 1,284,300 1,052,812 % Other income Gain on sale of equipment 17,900 % Other expenses Interest expense (12,200) % Income before income tax 1,290,000 1,052,812 % Income tax expense 387,000 315,844 % Net income $903,000 $736,968 % $ Amount Percent Sales $5,571,500 % Less: Cost of goods sold 3,159,600 % Gross profit 2,411,900 % Operating expenses Advertising 49,600 % Insurance 403,400 % Salaries and wages 580,900 % Depreciation 72,400 % Other operating expenses 21,300 % Total operating expenses 1,127,600 % Income from operations 1,284,300 % Other income Gain on sale of equipment 17,900 % Other expenses Interest expense (12,200) % Income before income tax 1,290,000 % Income tax expense 387,000 % Net income $903,000 % 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 (2) Accounts receivable turnover ratio times (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 : The company's solvency is very Profitability . The company's profitability is Overall : By all measures the company appears to be both financially