please solve E2-1

please solve E2-8 and show work

ents. above, how did the company's profitability change from 2016 to 2017? (c) Suppose the company had paid dividends on preferred stock and on common stock during the year. How would this affect your calculation in part (a)? E2-8 These financial statement items are for Fairview Corporation at year-end, July 31, 2017. $ 2,080 Salaries and wages payable Salaries and wages expense Supplies expense Equipment 57,500 15,600 18,500 Accounts payable 4,100 Service revenue 66,100 Rent revenue 8,500 Notes payable (due in 2020) 1,800 Common stock 16,000 Cash 29,200 Accounts receivable 9,780 6,000 Accumulated depreciation-equipment Dividends 4,000 Depreciation expense 4,000 Retained earnings (beginning of the year) 34,000 Instructions (a) Prepare an income statement and a retained earnings statement for the year. Fairview Corporation did not issue any new stock during the year. (b) Prepare a classified balance sheet at July 31. (c) Compute the current ratio and debt to assets ratio. (d) Suppose that you are the president of Lunar Equipment. Your sales manager has ap- proached you with a proposal to sell $20,000 of equipment to Fairview. He would like to provide a loan to Fairview in the form of a 10%, 5-year note payable. Evaluate how this loan would change Fairview's current ratio and debt to assets ratio, and discuss whether you would make the sale. ents. above, how did the company's profitability change from 2016 to 2017? (c) Suppose the company had paid dividends on preferred stock and on common stock during the year. How would this affect your calculation in part (a)? E2-8 These financial statement items are for Fairview Corporation at year-end, July 31, 2017. $ 2,080 Salaries and wages payable Salaries and wages expense Supplies expense Equipment 57,500 15,600 18,500 Accounts payable 4,100 Service revenue 66,100 Rent revenue 8,500 Notes payable (due in 2020) 1,800 Common stock 16,000 Cash 29,200 Accounts receivable 9,780 6,000 Accumulated depreciation-equipment Dividends 4,000 Depreciation expense 4,000 Retained earnings (beginning of the year) 34,000 Instructions (a) Prepare an income statement and a retained earnings statement for the year. Fairview Corporation did not issue any new stock during the year. (b) Prepare a classified balance sheet at July 31. (c) Compute the current ratio and debt to assets ratio. (d) Suppose that you are the president of Lunar Equipment. Your sales manager has ap- proached you with a proposal to sell $20,000 of equipment to Fairview. He would like to provide a loan to Fairview in the form of a 10%, 5-year note payable. Evaluate how this loan would change Fairview's current ratio and debt to assets ratio, and discuss whether you would make the sale