Requirements: Compute the 2023 and 2022 ratlos below and answer the three questions Total Points: 20 Critterz Veterinary Supply Co. Ratios (14 points) 12/31/23 12/31/22 Current ratio Acid test ratio Inventory Turnover Days in Inventory Debt ratio Gross Profit Percentage Return on Common Stockholders Equity Questions: (each 2 point) Enter answer in cells below 1. The financial risk of the organization is evaluted using which ratio? 2. The profitablility of each sales dollar above the cost of the products sold is measured with which ratio? 3. Has the ability to pay current liabilities immediately with current liquid assets is measured with which ratio? Data to be used to complete Requirements: Critterz Veterinary Supply Co. Balance Sheets As of December 31, 2023, 2022, and 2021 12/31/23 12/31/22 12/31/21 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant & equip, net Intangible assets Other long-term assets Total long-term assets Total assets $ 13,800 $ 12,200 $ 10,100 36,800 31,400 28,200 13,400 11,000 8,000 9,000 7,000 6,000 73,000 61,600 52,300 251,700 185,000 107,100 3,500 2,000 2,000 12,400 9,500 8,500 267,600 196,500 117,600 $ 340,600 $ 258,100 $ 169,900 Liabilities and Equity Liabilities $ 45,600 $ 36,500 $ 31,200 50,000 48,000 45,000 95,600 84,500 76,200 Accounts payable Long-term loans payable Total liabilities Equity Preferred stock, 2% Common stock Retained earnings Total equity Total liabilities and equity 4,000 4,000 4,000 6,000 5,000 5,000 239,000 168,600 88,700 245,000 173,600 93,700 $ 340,600 $ 258,100 $ 169,900 Critterz Veterinary Supply Co. Income Statements For years ending 12/31/23 12/31/22 12/31/21 Sales (all credit sales) Cost of goods sold Gross profit General and administrative expenses Operating income Interest expense Income before taxes Tax expense Net income $ 302,600 $ 322,900 $ 335,200 174,500 182,000 191,000 $ 128,100 $ 140,900 $ 144,200 29,200 28,600 30,200 $ 98,900 $ 112,300 $ 114,000 2,200 2,100 1,800 $ 96,700 $ 110,200 $ 112,200 18,300 22,300 21,000 $ 78,400 $ 87,900 $ 91,200 Critterz Veterinary Supply Co. Statement of Retained Earnings For years ending 12/31/23 Beginning retained earnings 168,600 Net income 78,400 Less dividends (8,000) Less Common stock dividends (3,000) Ending retained earnings 239,000 12/31/22 88,700 87,900 (8,000) (3,000) 168,600 12/31/21 5,500 91,200 (8,000) (3,000) 88,700