DEF Retail's financial information is summarized as follows:

Cash: $100,000

Accounts Receivable: $40,000

Inventory: $30,000

Notes Payable: $10,000

Long-term Debt: $50,000

Retained Earnings (beginning of the year): $35,000

Common Stock: $100,000

Sales Revenue: $120,000

Cost of Goods Sold: $60,000

Operating Expenses: $20,000

Interest Expense: $5,000

Income Tax Expense: $8,000

Requirements:

Calculate the gross profit.

Determine the net income for the year.

Calculate the current ratio.

Compute the debt ratio.