B. Financial statement interpretation Use the following data to ascertain (1) liquidity, (2) solvency and (3) profitability of the companies below. Full answers will call upon each ratio discussed in class and in your notes with a THOROUGH analysis of what these ratios measure and their meaning (you will receive far fewer points for correctly calculating each ratio than you will interpreting and applying them). Full answers will also take advantage of any time trends noted. Consolidated balance sheets for the fiscal year ending 12/31/21 120 12/31/21 12/31/20 12/31/21 12/31/20 Cash and equivalents $40 $25 25 35 Marketable securities 15 25 40 20 Accounts receivable, net 140 40 30 Assigned receivables 40 0 0 0 Inventory 30 40 110 100 Other current assets 5 15 5 10 Long-term investments 30 25 40 10 Property, plant and equipment, net 500 540 450 510 Intangibles 10 15 20 35 Current liabilities 180 200 170 190 Long-term liabilities 320 310 285 330 Common stock 5 5 10 10 Additional paid-in capital 100 100 150 150 Retained earnings 185 240 115 70 Income statement for the fiscal year ending 12/31/21 740 Cash sales revenue 600 Credit sales revenue 210 Cost of goods sold (610) Gross profit 200 Selling, general and administrative expenses (110) Income from operations 90 Interest expense, net (50) Pretax income 40 Tax expense (8) Income from Continuing operations 32 Discontinued operations effect, net of tax (77) Net income (45) 600 (940) 400 (310) 90 (25) 65 (20) 45