Based on the information below, what is the answer to this? give me a process.

Answer Section FORMULA1 FORMULA2 FORMULA3 FORMULA4 Liquidity ratios: Acid-test (quick) ratio Current ratio Activity ratios: Accounts receivable turnover Inventory turnover Profitability ratios: Gross profit ratio Net income to sales Rate earned on total assets Rate earned on common stock equity Coverage ratios: Debt to total assets Times interest earned FORMULA5 FORMULAG FORMULAZ FORMULA FORMULA FORMULA10 RATIOA Ratio Analysis Data Section Global Technology Comparative Income Statement For Years Ended December 31, 2012 and 2011 2012 Net sales $3,516,075 Cost of merchandise sold 2,820,000 Gross profit $696,075 Selling expenses $123,000 General expenses 81,660 Total operating expenses $204,660 Operating income $491,415 Other expenses (interest) 36,000 Income before income tax $455,415 Income tax 164,400 Net income $291,015 2011 $3,300,330 2,550,000 $750,330 $127,500 88,500 $216,000 $534,330 19,500 $514,830 220,905 $293,925 Global Technology Comparative Retained Earnings Statement For Years Ended December 31, 2012 and 2011 Global Technology Comparative Retained Earnings Statement For Years Ended December 31, 2012 and 2011 2012 Retained earnings, January 1 $1,420,095 Net income for year 291,015 Total $1,711,110 Common stock dividends 82,500 Retained earnings, December 31 $1,628,610 2011 $1,186,170 293.925 $1,480,095 60,000 $1,420,095 Global Technology Comparative Balance Sheet For Years Ended December 31, 2012 and 2011 Assets 2012 Cash $34,830 Accounts receivable 232,500 Merchandise inventory 825,480 Prepaid expenses 22,500 Plant assets (net) 1,800,000 Total assets $2,915,310 2011 $63,000 298,575 637,500 25,500 1,530,000 $2,554,575 Liabilities & Stockholders' Equity Accounts payable Bonds payable, 10% due 2010 Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities & stockholders' equity $326,400 360,000 $686.400 $600,300 1,628,610 $2.228.910 $2.915,310 $339,180 195,000 $534,180 $600,300 1,420,095 $2,020,395 $2,554,575