TWO DOCUMDUR to the accounts: UT DOUTOR Croty orre Retained Earnings $ 52,500 Pald-in Capital in Excess of Par Value - Common Stock 150,000 Sales 425,000 Administrative Expenses E 90,000 Mortgage Note Payable (due in year 2032 and excluding current portion) 180,000 Cash 20,000 Inventory 28,000 Accounts Receivable 44,000 Building 260,000 Sales Returns and Allowance 5,000 Accounts Payable 30,000 Office Supplies 2,000 Land 50,000 Cost of Goods Sold 180,000 Allowance for Bad Debts 4,000 Equipment 105,000 Accumulated Depreciation - Buildin 20,000 Selling Expenses 85,000 Unearned Revenue 3,000 Interest Expense 15,000 Prepaid Insurance 3,000 Cash Dividends Short-term Investments 8,000 Patent (net of amortization) 50,000 Accumulated Depreciation - Equipment 45,000 Current Portion of Long-Term Debt 15,000 Common Stock (10,000 shares of $5 par value stock outstanding for the entire year) 50,000 Accrued Expenses (e.g. Salaries Payable, Estimated Liability for Product Warranties, etc.) 10,000 Required: 27,000 a. Prepare an Income Statement in multi-step form, a Statement of Retained Earnings and a (Classified) Balance Sheet for Dragon's Breath Brew Pub, Inc., at December 31, 2019. Assume a tax rate of 25% on net income before taxes. Evaluate Dragon's Breath Brew Pub, Inc. from the standpoint of profitability and liquidity (see select ratios and industry averages on next page). Select Ratios used throughout the course: Ratio Formula Industry Average 1.3 Acid Test (Quick Ratio) Cash + ST Investments Receivables eceivables Current Liabilities Current Ratio 21 Current Assets Current Liabilities - 1 Earnings Per Share Net Income - Preferred Stock Dividends Weighted Average shares of CIS outstanding $2.70 Gross Profit Percentage Gross Profit Net Sales Rate of Return on Assets Net Income + Interest Expense Average Total Assets NOTE: assume Total Assets were $488 5500 at December 31, 2018 308 words