STU Corporation’s financial records at the end of the year included the following amounts:

Cash: $85,000

Accounts Receivable: $45,000

Inventory: $20,000

Accounts Payable: $10,000

Notes Payable: $8,000

Retained Earnings (beginning of the year): $25,000

Common Stock: $70,000

Sales Revenue: $140,000

Cost of Goods Sold: $75,000

Operating Expenses: $30,000

Interest Expense: $5,000

Income Tax Expense: $9,000

Requirements:

Compute the gross profit.

Calculate the net income for the year.

Determine the ending retained earnings.

Compute the current ratio.

Calculate the debt ratio.