The adjusted trial balance for Anara Co. as of December 31, 2018, follows. Anara Company is required to make an $8,400 payment on its long-term notes payable during 2019.

Required

1. Prepare the income statement and the statement of retained earnings for calendar-year 2018 and the classified balance sheet at December 31, 2018.

2. Prepare the necessary closing entries at December 31, 2018.

3. Use the information in the financial statements to calculate these ratios: (a) return on assets (total assets at December 31, 2017, were $160,000); (b) debt ratio; (c) profit margin ratio (use total revenues as the denominator); and (d) current ratio. Round ratios to three decimals for parts a and c, and to two decimals for parts b and d.

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ANARA COMPANY Adjusted Trial Balance December 31, 2018 Account Title No. Debit Credit 101 Cash .... $ 7,400 104 Short-term investments 11,200 Supplies .. 126 4,600 128 Prepaid insurance 1,000 167 Equipment..... 24,000 $ 4,000 Accumulated depreciation-Equipment 168 100,000 173 Building... 174 Accumulated depreciation-Building 10,000 Land. 30,500 183 201 Accounts payable.. Interest payable. Rent payable... Wages payable... Property taxes payable 3,500 203 1,750 208 400 210 1,280 213 3,330 233 Uneamed professional fees.. 750 251 Long-term notes payable. 40,000 Common stock.. 307 30,000 318 Retained eamings, December 31, 2017.. 62,800 Dividends.... 319 8,000 401 Professional fees earned. 59,600 406 Rent earned ... 4,500 Dividends earned. Interest earned.. Depreciation expense-Building.. Depreciation expense-Equipment.. 407 1,000 409 1,320 606 2,000 612 1,000 18,500 623 Wages expense Interest expense.. Insurance expense.. Rent expense Supplies expense.. Postage expense . 1,550 633 637 1,525 640 3,600 652 1,000 682 410 683 Property taxes expense 4,825 Repairs expense.. 684 679 Telephone expense Utilities expense. 688 521 690 1,920 $224,230 $224.230 Totals....