RetailCo's year-end balances are:

• Cash: $85,000
• Marketable Securities: $25,000
• Accounts Receivable: $60,000
• Inventory: $100,000
• Prepaid Expenses: $5,000
• Accounts Payable: $35,000
• Notes Payable: $25,000
• Long-Term Liabilities: $150,000
• Common Stock: $200,000
• Retained Earnings, beginning of year: $80,000
• Sales Revenue: $500,000
• Cost of Goods Sold: $300,000
• Operating Expenses: $120,000
• Interest Expense: $10,000
• Income Tax Expense: $20,000

Requirements:

1. Compute the net income for RetailCo.
2. Determine the current ratio.
3. Calculate the debt-to-equity ratio.
4. Find the ending retained earnings.