The following is the comparative balance sheets for a caf for the years ending 31 December 2020 and 2021.

	2020	2021
	$	$
Assets
Furniture and equipment
>cost	45,900	53,100
>accumulated depreciation	- 24,300	- 26,100
Cash	44,640	46,080
Account receivable	32,940	31,860
Food and beverage inventories	32,220	35,460
Total assets	131,400	140,400
Liabilities
Account payable	28,080	32,040
Income tax payable	20,520	18,360
Long-term loan	64,440	68,040
Equity shares	7,560	9,360
Retained earnings	10,800	12,600
Total assets	131,400	140,400

Additional information:

1. Net income for the year 2021 is $12,600. The annual depreciation of $1,800 was included as an expense to arrive at net income.
2. New shares of 90 shares at $20 each were issued.
3. The long-term loan was increased by $3,600.
4. Dividends of $10,800 were paid out.
5. New equipment costing $7,200 was purchased.

Required:

1. Based on the above statement, calculate current ratio for both years.
2. Comment on the ratio performance calculated in (a) above.
3. Calculate the working capital for the year 2020 and 2021
4. Calculate the retained earnings at 31 December 2021.
5. Prepare the Statement of Cash Flow for the year ended 31 December 2021.