You have been called in as a consultant to the new water authority director. She has told you that the Panamanian government embarked recently on a campaign to improve living conditions in rural areas. As part of the campaign, the water authority began a program to deliver more potable water to people in rural areas. She has told you that in low- income countries, the most frequent cause of death is gastro - intestinal disease. There seems to be a correlati on between red uction of gastrointestinal disease and the extension of potable water services to a large proportion of the low-income populations. This knowledge has in part served as the rationale for extension of potable water services to rural areas. The new director informed you that the service expansion campaign she inherited has certain difficulties. In order to orient you, she has given you balance sheet and income statements (Tables 1 and 2) and the production data (Table 3). She would like you to do an analysis and write a 2-3 page memo with a preliminary identification of the most important problems and a discussion of possible causes and solutions. Compute the ratios listed in Table A and include that as an appendix table in your memo . In the firs t few paragrap hs of your memo present a general discussion along with the identification of the key issues and possible solutions to the problems. Subsequently, discuss the specific areas like liquidity , solvency , profitability and efficiency , and describe the trends an d what they imply