List of accounts of the current year-end of MAN Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $7,900; accounts receivable net, $3,400.) List of accounts Accounts payable Accounts receivable $ 7,000 4,000 Accumulated depreciation-Store equipment Advertising expense 15,250 8,600 Allowance for uncollectible accounts 750 Bank loan 2 years 5,000 Cash 1,000 Common stock 5,000 Cost of goods sold 38,400 Depreciation expense-Store equipment 2,500 Dividends 2,200 Gain on the sale of equipment 2,300 Insurance expense of store 1,000 Interest expense 1,300 Loss on the sale of equipment Merchandise inventory Office salaries expense Prepaid insurance 1,700 7,750 16,500 2,400 Rent expense-Office space 7,500 Rent expense-Selling space 6,200 Retained earnings Jan. 1, 2021 22,000 Sales 111,950 Sales discounts 2,000 Sales returns and allowances 2,200 Sales salaries expense Short-term investments Store equipment Store supplies 15,000 1,500 42,900 5,800 Store supplies expense 1,800 Unearned Revenue 3,000 Required: a- Prepare multiple-step income statement and classified balance sheet of the company. b- Compute the followings: (1) current ratio, (2) quick ratio, (3) receivable turnover, (4) collection period, (5) inventory turnover 6) days of inventory on hand, (7) debt ratio, (8) debt-to-equity ratio (9) gross profit ratio c- You determine that the following ratios are typical of companies in MAN Corp.'s industry. Current ratio. 2.3 Days in inventories 20 days Debt to equity 0.55 Evaluate the situation of the company by comparing with industry average