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.

b.) Prepare a vertical analysis of the income statement for 2020.

Question 2 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 $831,600 $750,700 Accounts receivable 684,300 542.100 Work in process 699,700 Inventory 17,000 7,400 Prepaid expenses 75,900 43.000 Total current assets 2,309,500 1,343,200 Property, plant, and equipment Land 300,000 300,000 Buildings 451,000 451,000 Equipment 928,600 800,000 Fumishings 40,600 40,600 Accumulated depreciation (479,500) (480,700) Total property, plant, and equipment 1.240,700 1,110,900 Total assets $3,549,200 $2,454,100 Liabilities and Stockholders' Equity Current liabilities Accounts payable $157,000 5127,600 WATERWAYS CORPORATION-INSTALLATION DIVISION Balance Sheets December 31 Assets 2020 2019 Current assets Cash $831,600 $750,700 Accounts receivable 684,300 542,100 Work in process 699,700 Inventory 17,000 7,400 Prepaid expenses 75,900 43,000 Total current assets 2,308,500 1,343,200 Property, plant, and equipment Land 300,000 300,000 Buildings 451,000 451,000 Equipment 928,600 800,000 Furnishings 40,600 40,600 Accumulated depreciation (479,500) (480,700) Total property, plant, and equipment 1,240,700 1,110,900 Total assets $3,549,200 $2,454,100 Liabilities and Stockholders' Equity Current liabilities Accounts payable $157,000 $127,600 Income taxes payable 100,900 79,700 Wages payable 4,600 2,000 Interest payable 1,200 Other current liabilities 14,700 15,300 Revolving bank loan payable 15,200 Total current liabilities 293,600 224,600 Long-term liabilities Note payable 138,000 Total liabilities 431,600 224,600 $127,600 79,700 2,000 Llabilities 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 $157,000 100,900 4,600 1,200 14,700 15,200 293,600 15,300 224,600 138,000 431,600 224,600 1,250,000 1,867,600 3,117,600 $3,549,200 1,250,000 979,500 2,229,500 $2,454,100 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statements For the Year Ending December 31 2020 2019 Sales $5,500,914 $4,914,300 Less: Cost of goods sold 3,108,200 2,798,000 Gross profit 2,392,714 2,116,300 Operating expenses Advertising 49,500 47,500 Insurance 397,200 397,200 Salaries and wages 589,000 559,000 Depreciation 73,100 64,100 Other operating expenses 21,100 18,414 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statements For the Year Ending December 31 2020 2019 Sales $5,500,914 $4,914,300 Less: Cost of goods sold 3,108,200 2,798,000 Gross profit 2,392,714 2,116,300 Operating expenses Advertising 49,500 47,500 Insurance 397,200 397,200 Salaries and wages 589,000 559,000 Depreciation 73,100 64,100 other operating expenses 21,100 18,414 Total operating expenses 1,129,900 1,086,214 Income from operations 1,262,814 1,030,086 Other income Gain on sale of equipment 18,100 Other expenses Interest expense (12,200) Income before income tax 1,268,714 1,030,086 Income tax expense 380,614 309,026 Net income $888,100 $721,060 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement Amount Percent Sales $5,500,914 % Less: Cost of goods sold 3,108,200 % Gross profit 2,392,714 % Operating expenses Advertising 49,500 % Insurance 397,200 % Salaries and wages 589,000 96 Depreciation 73,100 96 Other operating expenses 21,100 % Total operating expenses 1,129,900 % Income from operations 1,262,814 % Other income Gain on sale of equipment 18,100 % Other expenses Interest expense (12.200) % Income before income tax 1,268,714 % Less: Cost of goods sold 3,108,200 % Gross profit 2,392,714 % Operating expenses Advertising 49,500 % Insurance 397,200 % Salaries and wages 589,000 % Depreciation 73,100 % Other operating expenses 21,100 % Total operating expenses 1,129,900 % Income from operations 1,262,814 % Other income Gain on sale of equipment 18,100 % Other expenses Interest expense (12,200) % Income before income tax 1,268,714 % Income tax expense 380,614 % Net income $888,100 %