Here are a companies transactions for the year 2022.

Calculate two liquidity ratios. Assume that the services to be completed for D will be performed in the first quarter of 2023. Briefly describe your assessment of the company's liquidity based on the ratios. How might you locate appropriate benchmarks to compare these ratios?

a. Issued stock for cash, $10,000

b Paid $3,000 cash for advanced payment of three months rent (November, December and January).

c. Purchased supplies on account, $2,000.

d. Received $12,000 cash for services to be completed in the future.

e. Borrowed $10,000 from Madoff Savings and Loan on a 5-year promissory note (ignore interest expense for this problem.)

f. Purchased equipment for $10,000.

g Performed $6,000 of the services in transaction (d).

h. An inventory at year-end reveals that there is $1,300 of supplies remaining.

i. Regular weekly salaries are $10,000. Salaries are paid on Friday for the five-day week which ended the previous Friday. 12/31 is a Wednesday.

j. Recorded rent expense for year ended 12/31 (see transaction b)

k. Recorded depreciation expense of $8,000 for the equipment purchased in (f).