The following information was obtained from the records of Uptown, Inc., as of December 31, 2003. MUN Clemence See Me OP Sie a ons Ron $ 37,500 BUIGINGS eaten tint crtic hc ats seat meee 145,050 Salaries expense 40,050 WEINTTIESYEXPDOMNSE Fin nce sce ih shou woh keen ee 9,750 ACCOUNTS Payablexneiess katamtiene de iuen nee 25,650 REVENUES micas. g.usecinien Hoot eMac aet a tah etn are 397,800 SUPDIESt wes, viseeridensrce WAGs: one heen cg hee en 69,450 Retained earnings (1/1/03) ............... 272,550 Capital stock (1,000 shares outstanding).... . 45,000 ACCOUNTSINECeIVabl@ aac sweets gan. cee seeeeee 46,500 SUppllessexPeMnSeOwe cece n nce een nner 207,900 Gashigersengeata ect sins ate Mit ceca: Shore entero ? Notes payable (long-term) ............... 25,800 REMMEXDENSC sees Rees ora. tha fate Chee ane 25,650 DividendsaneZ00Smaaeiee arise falsceedeaey ae 60,750 € OmnemexpenSeS ss ake ae arin’ wicca aieme cieiceas 13,050 Incomestaxes)).. acta cia olor Aho cae eee 52,800 Prepare an income statement for the year ended December 31, 2003. Prepare a classified balance sheet as of December 31, 2003. Compute the current ratio as of December 31, 2003. Compute the debt ratio as of December 31, 2003. Interpretive Question: What does the current ratio tell about Uptown’s liquidity? Interpretive Question: What does the debt ratio tell about Uptown’s leverage? Interpretive Question: Why is the balance in Retained Earnings so large as compared with the balance in Capital Stock?