Required:

1. Using the information provided below, calculate the following ratios:

• Acid-test ratio
• Current ratio
• Gross profit ratio
• Net profit ratio
• Debt ratio
• Equity ratio
• Earnings per share ratio

1. Briefly discuss the liquidity and profitability of the company in 2024 in comparison to 2023 using the ratios calculated in the analysis.
3. Anetek Corporation Income Statement 2024 2023 Sales 1,600,000 1,350,000 Cost of Goods Sold 1,200,000 850,000 Gross Profit 400,000 500,000 Operating Expenses Selling expenses 150,000 50,000 Depreciation 75,000 50,000 Income from Operations 175,000 400,000 Interest 50,000 25,000 Income before Income Taxes 125,000 375,000 Income Taxes 18,000 15,000 Net Income 107,000 360,000 Anetek Corporation Balance Sheet December 31, 2024 2024 2023 Assets Current Assets Cash 40,000 25,000 Short-term note receivable 100,000 75,000 Accounts Receivable 350,000 300,000 Inventory 390,000 250,000 Total Current Assets 880,000 650,000 Fixed Assets Property, plant, and equipment 1,100,000 1,100,000 Total Assets 1,980,000 1,750,000 Liabilities Current Liabilities Accounts Payable 205,000 100,000 Notes Payable 250,000 200,000 Total Current Liabilities 455,000 300,000 Long-term debt 725,000 782,500 Total Liabilities 1,180,000 1,082,500 Shareholders' Equity Common Shares: 100,000 shares authorized, 1,500 shares issued and outstanding. 150,000 150,000 Contributed Surplus 400,000 350,000 Retained Earnings 250,000 167,500 Total Shareholders' Equity 800,000 667,500 Total Liabilities and Equity 1,980,000 1,750,000