CE #2 (Ch. 2) These items are taken from the accounting records of Entity A at its December 31, 2024 year end. Accounts payable Accounts receivable Building Accumulated depreciation-building. Depreciation expense Cash Common stock. Dividends Sales revenue $3,450 13,320 71,800 21,000 6,000 14,080 40,000 36,000 168,200 Income tax expense 10,000 Income taxes payable 8,000 Insurance expense 3,784 Land (on which the building sits) 30,000 Note payable (due in 2029) 2,000 Patent Prepaid insurance 9,000 1,188 Retained earnings, beginning 53,070 Salaries and wages expense 93,850 Salaries and wages payable Supplies Supplies expense GM common stock (long-term investment) Utility expense 7,650 228 1,320 11,000 1,800 Instructions In good form (include headings), prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2024. Then compute the current ratio and the debt-to-total-assets ratios identifying which is a measure of liquidity and which is a measure of solvency. Don't forget this last part as you won't have an opportunity to resubmit. Check figures: Retained earnings, December 31, 2024 $68,516; Total assets, $129,616