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These items are taken from the accounting records of Entity A at its December 31, 2022 year end. Accounts payable - $834 Accounts receivable- 810

These items are taken from the accounting records of Entity A at its December 31, 2022 year end.

Accounts payable - $834

Accounts receivable- 810

Accumulated depreciation - building - 670

Building - 2,420

Cash - 1,270

Common Stock - 16,900

Copyright - 1,800

Depreciation expense - 335

Dividends - 325

Income tax expense - 165

Income tax payable - 135

Insurance expense - 210

Interest expense - 400

Inventory - 967

Investment in land - 14,200

Land - 3,100

Marketable securities (short-term) - 1,200

Mortgage payable (due 2032) - 3,500

Note payable (due 2023) - 61

Prepaid insurance -60

Retained Earnings (beginning) - 1,600

Salaries and wages expense 1,060

Salaries and wages payable - 222

Service revenue - 5,100

Supplies expense - 700

Instructions - In good form (including headings), prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2022. Then compute the current ratio and the debt-to-total-assets ratios identifying which is a measure of liquidity and which is a measure of solvency.

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