Kumar Inc.'s separate entity statements under the cost method and its consolidated statements for the year ended December 31 , Year 6. are presented below. EXTRACT FROM STATEMENTS OF PROFIT, Year 6 Separate Entity Profit Consolidated $50,850 $46,485 4,365 Additional Information - Kumar purchased 70% of the outstanding shares of Sage on January 1, Year 4, at a cost of \$112,000. - Neither of the companies declared or paid any dividends during Year 6. Page 283 Required (a) Determine Kumar's net income, retained earnings, and shareholders' equity for its separate entity statements under the equity method. (b) Calculate the current ratio, debt-to-equity ratio, and return on total equity for Year 6 for Kumar's three sets of financial statements, i.e., cost method, equity method, and consolidated. (c) Explain which of the three financial statements report the best liquidity, solvency, and profitability for Year 6