Hytek Corporation ended 2008 with cash of $50,000, accounts receivable of $100,000, and inventory of $300,000. Property, plant, and equipment were valued at their original cost of $470,000, less accumulated depreciation of $170,000. Current liabilities other than income taxes owed (see below) were $120,000 and long term debt was $250,000. Stockholders' equity consisted of (1) $90,000 common stock investment and (ii) accumulated retained earnings, which had totaled $300,000 at the end of 2007. Net sales for 2008 were $1,050.000. Expenses included $635,000 cost of goods sold, $50,000 allowance for depreciation, $90,000 selling expense, and $70,000 G&A expense. Interest income and expense were $5000 and $30,000, respectively, and income taxes for the year (unpaid at year's end) were $80,000. a) Prepare an income statement. b) Use the output of parts (a) and given Balance Sheet, calculate the seven financial ratios and comment on the values you obtain. Balance Sheet, Hytek Corp., December 31, 2008 ASSETS Current assets Cash $ 50,000 Accounts receivable 100,000 Inventory 300.000 Total current assets $450,000 Property, plant, and equipment 470,000 Less accumulated depreciation 170.000 Net property, plant, and equipment 300.000 TOTAL ASSETS $750,000 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities Income taxes owed $ 80,000 Other current liabilities 120,000 Total current liabilities $200,000 Long term debt 250,000 TOTAL LIABILITIES $450,000 Stockholder's equity 300,000 Capital stock 90,000 Retained Earnings 210,000 300.000 TOTAL LIABILITIES AND EQUITY $750,000