CE #2Spring 2024ACCT 2110-OnlineDue: Friday, February 2nd at 11 pm These items are taken from the accounting records of Entity M at its December 31, 2025 year end. Unearned revenues$1,000Retained earnings (beginning of year)33,000Utilities expense2,000Equipment56,000Accounts payable4,300Cash11,900Salaries and wages payable3,000Common stock13,000Dividends14,000Service revenue74,000Prepaid advertising3,500Note receivable (due 2027)4,000Repair expense1,800Depreciation expense3,300Accounts receivable4,200Advertising expense2,200Salaries and wages expense47,000Accumulated depreciation17,600Patent6,000Note payable (due 2029) 10,000 InstructionsIn good form (include headings), prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2025. 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. Check figures:Retained earnings, December 31, 2025, 36,700; Total assets, $68,000. Did you remember to do the last part?