You are the manager of a credit department. The sales team has presented a large order from a new purchaser, Wizard Industries. For approximately $12$ years, Wizard has beeninstalling security and water sprinkler systems in office buildings. The salespeople have been well trained, as they have also presented you with the following financial statements and industry ratios $($from your files$).$ In their report they note that sales have increased in the last two years due to Wizard's more aggressiveselling approach. The sales team is cager for you to grant credit to Wizard Industries. Of course, you must do a complete analysis noting any ratios that are cause for concern or require afurther explanation.What is your recommendation? Do you grant credit?Page $97$Sales $($all on credit$)$Cost of goods soldGross profitSelling and administrative expenseAmortizationOperating profitInterest expenseEarnings before taxesTaxesWIZARD INDUSTRIESIncome Statements Year Ended$20$XX$20$XW$20$XV$$1,605,100$ $$1,841,300$ $ $1,542,7001,258,9001,397,4001,174,800346\mathrm{.}200443,900367,900265,650256,850294,20014,00014,40016,00066,550172,65057,70065,10050,55050,1001,450122,1007,60035027,1002,200$