solve the following

Instructions: Have fun solving the following ratios! Please handwrite your work on a separate sheet(s) of paper. Show your calculation and box or circle your final answers!l All final answers should be rounded to two decimal places and in proper terms (\#, \%, days, times, etc.). 1. HORIZONTAL ANALYSIS. Use horizontal analysis to compute the percentage change in cash, longterm debt, and retained earnings from 2021 to 2022. Example: Long-term debt =(P1-P0) )P0=($15,000$18,000)/$18,000=0.1667=16.67% 2. LIQUIDITY. Compute the current ratio, quick (acid-test) ratio, and the cash ratio for 2022. Put an H or. L besides each of your answers to indicate whether the ratio should be higher (H) or lower (L) in general. 3. SOLVENCY. Compute the debt-to-assets and times interest earned ratio for 2022. Put an H or L besides each of your answers to indicate whether the ratio should be higher (H) or lower (L) in general. 4. TURNOVER. Compute the inventory turnover, average days in inventory, receivables turnover, average collection period, and asset turnover ratio for 2022. Put an H or L besides each of your answers to indicate whether the ratio should be higher (H) or lower (L) in general. Example: Avg days in inventory =365 days/inv. Tumover =365/2.40=152.08 days (L) 5. PROFITABILITY. Compute the profit margin, return on assets, and return on equity for 2022. Put an H or L besides each of your answers to indicate whether the ratio should be higher (H) or lower (L) in general. 6. MARKET VALUE. Suppose that WAY2MUCHFUN Accounting has 1,000 shares of common stock outstanding, and that the market price per share is $40. Compute the EPS, P/E ratio, payout, and retention ratio for 2022. Put an H or L besides your EPS and P/E ratio answers to indicate whether the ratio should be higher (H) or lower (L) in general. WAY2MUCHFUN ACCOUNTING CO., INC. 2022 Retained Earnings Statement WAY2MUCHFUN ACCOUNTING CO., INC. Balance Sheets as of December 31, 2021 and 2022