Condensed balance sheet and income statement data for Danke Corporation are presented as follows.

Danke Corporation Balance Sheets December 31

2025 2024

Assets

Cash $28,000 $20,000

Receivables (net) 70,000 62,000

Other current assets 90,000 73,000

Long-term investments 62,000 60,000

Property, plant, and equipment (net) 510,000 470,000

Total assets $760,000 $685,000

Liabilities and Stockholders Equity

Current liabilities $75,000 $70,000

Long-term liabilities 80,000 90,000

Common stock 330,000 300,000

Retained earnings 275,000 225,000

Total liabilities and stockholders equity $760,000 $685,000

Danke Corporation Income Statements For the Years Ended December 31

2025 2024

Sales revenue $750,000 $680,000

Cost of goods sold 440,000 400,000

Operating expenses (including income taxes) 240,000 220,000

Net income $ 70,000 $ 60,000

Additional information:

Dividends paid $20,000 $15,000

Weighted-average common shares outstanding 33,000 30,000

Instructions Compute these values and ratios for 2024 and 2025.

Earnings per share. Working capital. Current ratio. Debt to assets ratio. Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2024 to 2025 of Danke Corporation.

Compute ratios and compare liquidity and solvency for two companies.