P2-5 (Using financial statements to assess solvency and earning power) Excerpts from the financial statements for Spartan Unlimited are provided below. The first year of operations was 1995. 1997 1996 1995 Cash $ 500 $ 400 $ 300 Accounts receivable 800 500 600 Inventory 900 500 800 Land 3,200 3,500 3,000 Property, plant, and equipment 9,600 9,000 9,000 Accounts payable 1,500 1,000 2,400 Other short-term debts 1,200 1,600 1,000 Bonds payable 4,000 2,000 2,000 Contributed capital 6,800 6,800 6,800 Retained earnings 1,500 2,500 1,500 Sales 13,000 11,000 9,000 Expenses 11,000 8,000 7,000 Dividends 3,000 2,000 500 REQUIRED: Organize these numbers into financial statements (excluding the statement of cash flows), and comment on Spartan’s solvency and earning power positions.