Appendix Two (Benchmarking studies) Objective: To conduct ratio analysis of a comparable company (Waterloo Corporation) and compare with that of the industry. Waterloo Corporation Comparative Statements of Financial Position 31-Dec-19 Assets 2019 2018 Cash $ 45,000 $ 25,000 Accounts receivable 80,000 45,000 Merchandise inventory 65,000 70,000 Prepaid Expenses 55,000 28,000 Property, plant, and equipment 270,000 250,000 Total assets $ 515,000 $ 418,000 Liabilities and shareholders' equity Accounts payable 20,000 $ 30,000 Short-term bank loan payable 66,000 58,000 Bonds payable 130,000 160,000 Common shares 170,000 95,000 Retained earnings 129,000 75,000 Total liabilities and shareholders' equity $ 515,000 $ 418,000 Net sales Waterloo Corporation Income Statement Year Ended December 31, 2019 Cost of goods sold Gross profit Expenses Operating expenses $ 140,000 Amortization expense 25,000 Interest expense 15,000 $ 600,000 320,000 280,000