part 1 and 2 are completed i need help with question 3 Please

2. PREPARE A COMMON SIZE INCOME STATEMENT 12/31/20 % 140 -10 SALES REVENUES COST OF GOODS SOLD GROSS PROFIT OPERATING EXPENSES OPERATING INCOME INTEREST EXPENSE INCOME BEFORE TAX INCOME TAX NET INCOME 2650 1225 1425 750 675 67 608 304 304 100.0% 46.2% 53.8% 28.3% 25.5% 2.5% 22.9% 11.5% 11.5% 6 7 1. PREPARE A HORIZONTAL BALANCE SHEET 8 9 12/31/20 12/31/19 $ CHANGE % CHANGE 10 CURRENT ASSETS 11 CASH 50 45 5 11.11 12 SHORT TERM INVEST 150 10 7.14 13 ACCTS. RECEIVABLES 450 510 -60 (11.76) 14 INVENTORIES 510 520 (1.92) 15 PREPAID ASSETS 10 12 -2 (16.67) 16 TOTAL CURR. ASSETS 1170 1227 -57 (4.65) 17 LONG TERM ASSETS 18 MACHINERY 360 350 10 2.86 19 LAND 1180 1180 0 20 BUILDING 4500 4600 -100 (2.17) 21 PATENTS 230 250 -20 (8.00) 22 TOTAL LONG TERM 6270 - 6380 -110 (1.72) 23 TOTAL ASSETS 7440 7607 -167 (2.20) 24 25 CURRENT LIABILITIES 26 ACC. PAY 360 375 -15 (4.00) 27 WAGES PAY 65 74 -9 (12.16) 28 TOTAL CURRENT 425 449 -24 (5.35) 29 LONG TERM DEBT 2300 2350 -50 (2.13) 30 TOTAL LIABILITIES 2725 2799 (2.64) 31 STOCKHLD'S EQUITY 32 COMMON STOCK 3000 3000 0 33 RETAINED EARNINGS 1715 1808 -93 (5.14) 34 TOTAL ST. EQUITY 4715 4808 -93 (1.93) 35 TOTAL LIAB.ST. EQ 7440 7607 -167 (2.20) -74 Ingratios for 12/31/20 DO NOT AVERAGE USE 12/31/20 ONLY - 3. Using the information in the income statement and balance sheet in 1 and 2 prepare the following ratios ANSWER CURRENT RATIO ACID TEST AVREC TURNOVER INVENTORY TURNOVER TOTAL ASSET TURNOVER DEBT RATIO TIMES INTEREST EARNED PROFIT MARGIN RATIO RETURN ON TOTAL ASSETS RETURN ON COMM. STOCK EQUITY