1. Using the following data, compute: a) Debt ratio b) Current ratio c) Return on sales d) Asset turnover e) Return on equity f) Price-Earnings Ratio Accounts Payable Accounts Receivable Building Cash Capital Stock Inventory Land Long-term Note Payable Market Value of Equity Net Income Retained Earnings (ending) Sales Short-term Notes Payable Stockholders' Equity Unearned Revenue $2,400 6,750 65,000 2,100 26,150 4,100 14,000 32,000 103,000 9,000 24,000 86,000 5,700 50,150 1,700 2. Shirley Baum manages The Copy Shop. She has come to you for help in preparing an income statement and balance sheet for the year ended December 31, 2009. Several amounts, determined as of December 31, 2009 are presented below. No dividends were paid this year. Capital stock $40,000 Mortgage payable $72,000 (10,000 shares outstanding) Retained earnings (12/31/08) 12,400 Accounts payable 6,000 Advertising expennse 2,000 Land 24,000 Cash 17,000 Supplies 2,000 Rent expense 2,400 Salary expense 20,000 Building (net) 100,000 Revenues 42,000 Interest expense 700 Other expenses 1,300 Accounts receivable 3,000 a) Prepare an income statement for the year ended December 31, 2009, including EPS. b) Determine the amount of retained earnings at December 31, 2009. c) Prepare a classified balance sheet as of December 31, 2009