Use the following financial statement related to Morgan Builders under the percentage-of-completion and completed-contract methods to answer the questions below. (Click the icon to view the financial statement under the percentage-of-completion method.) (Click the icon to view the financial statement under the completed-contract method.) a. b. Compute the profit margins under the percentage-of-completion and completed-contract methods each year. Comment on the differences. Compute the debt-to-equity ratios under the percentage-of-completion and completed-contract methods each year. Comment on the differences. a. Compute the profit margins under the percentage-of-completion and completed-contract methods each year. Comment on the differences. (Round your answers to one decimal place, X.X%. Use parentheses or a minus sign for a loss. Enter a "0" for any zero amounts.) Begin by computing the profit margins under the percentage-of-completion method each year. 2022 2023 Profit margins % 2024 % Next, compute the profit margins under the completed-contract method each year. 2022 2023 Profit margins % The profit margin under the 2024 % Financial statement Percentage-of-Completion Method method is 0% in 2022 and 2023 as expected. Under the method, profit margin varies with estimated revenues and gross profit. Note also, under both methods, the profit margin on the contract overall is % b. Compute the debt-to-equity ratios under the percentage-of-completion and completed-contract methods each year. Comment on the differences. (Enter your answers a Begin by computing the debt-to-equity ratios under the percentage-of-completion method each year. Gross profit (loss) Debt-to-Equity Ratio 2022 2023 2024 Next, compute the debt-to-equity ratios under the completed-contract method each year. Debt-to-Equity Ratio 2022 2023 2024 The debt-to-equity ratio is in 2022 under the percentage-of-completion method than the completed-contract under the percentage-of-completion method as method, as expected. In 2023, the debt-to-equity ratio is a loss is reported. In the last year of the contract, the debt-to-equity ratio is under both methods. For the Year Income Statement Information Revenue from long-term contracts Costs of construction 2022 2023 2024 $ $ 2,316,000 $ 1,300,000 1,016,000 $ 4,169,000 $ 6.700.000 (2,531,000) $ 3,515,000 480,000 3,035,000 End-of-Year Balances Balance Sheet Information Assets $ Liabilities Equity 2021 22,000,000 $ 11,800,000 11,800,000 2022 2023 2024 21,900,000 $ 11,683,000 10,827,000 18,400,000 $ 21,500,000 10,460,000 11,800,000 8,060,000 10,100,000 Print Done