Drinkwater Inc. reported the following information:

Other information:
1. No shares were issued during the years ended March 31, 2014 and 2013.
2. No dividends were declared or paid during the years ended March 31, 2014 and 2013.
3. The market values per common share at March 31, 2014, and March 31, 2013, were $29 and $25 respectively.
4. Industry averages for 2014 were as provided in the chart on the following page.

Required
1. Using the information provided for Drinkwater Inc., prepare a comparative, single-step income statement and statement of changes in equity for the years ended March 31, 2014 and 2013, as well as a comparative classified balance sheet at March 31, 2014 and 2013.
2. Complete the chart below for Drinkwater Inc. (round all ratios to two decimalplaces):

Favourable or Unfavourable Favourable or Unfavourable Change From Relative to Industry Average for 2014 Calculate Calculate the Ratio for 2014: the Ratio for 2013: Industry Average 1.96:1 1.42:1 4.35 Favourable or Unfavourable Previous Year a, Current ratio . Acid-test ratio Days' sales uncollected 5.20 75.08 e. Merchandise turnover f. Days' sales in inventory h. Accounts payable turnover i. Debt ratio 21% Equity ratio k. Times interest earned 50.16 30.14 52.16 17.20% I. Profit margin m. Gross profit ratio... n. Return on total assets o. Return on common shareholders' equity p. Book value per common share q. Book value per preferred share 31 .00% 4.9 $22.00 $4.32 6.91 Earnings per share s. Price-earnings rati