XYZ Ltd. is a retail company that sells apparel. It started operations on January 1, 2022. The following are the transactions for the year:

1. Invested $200,000 cash in the company.
2. Bought inventory worth $60,000 on credit from ABC Inc.
3. Bought furniture and fixtures worth $30,000 by paying $10,000 cash and taking a loan of $20,000 from DEF Bank.
4. Sold inventory worth $80,000 on credit.
5. Paid $45,000 for operating expenses.
6. Collected $60,000 from customers for the credit sales made in transaction 4.
7. Paid $25,000 to ABC Inc. for the inventory purchased in transaction 2.
8. Received a bill for $10,000 from XYZ Advertising for advertising services that were provided during the year.
9. Paid interest of $2,000 on the loan taken in transaction 3.

Required:

a) Prepare the income statement, balance sheet, and statement of cash flows for the year ended December 31, 2022.

b) Calculate the current ratio and debt-to-equity ratio as of December 31, 2022.