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Holister Electric was able to find financial statements of another company, Stark Supplies Inc., that operates in the same industry. The comparative income statement and

Holister Electric was able to find financial statements of another company, Stark Supplies Inc., that operates in the same industry. The comparative income statement and balance sheet of this company is shown below.
Stark Supplies Inc.
Income Statement
For the Year Ended December 31
2021 2020
Sales Revenue $896,000 $960,000
Less Cost of Goods Sold 358,400 $384,000
Gross Profit 537,600 576,000
Operating Expenses
Operating Expenses $345,000 $472,000
Interest Expense $125,000 $74,000
Depreciation Expense 22,400 $18,600
Total Operating Expenses 492,400 564,600
Income from Operations 45,200 11,400
Income Tax Expense 12,204 3,078
Net Income 32,996 8,322
Stark Supplies Inc.
Comparative Balance Sheet
As at December 31
2021 2020
Assets
Current Assets
Cash $285,000 $298,000
Accounts Receivable 187,500 119,100
Prepaid Insurance 50,000 60,000
Inventory 90,000 80,000
Total Current Assets $612,500 $557,100
Non-Current Assets
Property, Plant & Equipment 475,000 475,000
Accumulated Depreciation (234,400) -212,000
Total Non-Current Assets 240,600 263,000
Total Assets $853,100 $820,100
Liabilities
Current Liabilities
Accounts Payable 91,200 86,300
Unearned Revenue 26,100 24,310
Total Current Liabilities $117,300 $110,610
Non-Current Liabilities
Bank Loan 82,000 78,000
Total Non-Current Liabilities 82,000 78,000
Total Liabilities 199,300 188,610
Shareholders' Equity
Common Shares 165,000 149,000
Retained Earnings 488,800 482,490
Total Shareholders' Equity 653,800 631,490
Liabilities & Shareholders' Equity $853,100 $820,100
Using the income statement and balance sheet from Holister Electric and Stark Supplies, calculate the appropriate ratios to determine which company is doing better in the categories listed below. Round all ratios to 2 decimal places. Write your explanations in the textbox.
b) liquidity for 2021 (current ratio, quick ratio, debt-to-equity)
7 Marks 0
Solve for current ratio, quick ratio, and debt-equity ratio, kindly should the math done to figure each?

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