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These items are taken from the accounting records of Entity A at its December 31, 2023 year end. Accounts payable .... Accounts receivable Accumulated depreciation equipment Depreciation expense Cash .... Common stock Dividends Equipment Sales revenue Income tax expense Income taxes payable Interest expense Interest payable ...... Land held for speculation Notes payable (due in 2028) Patent Prepaid rent Rent expense Retained earnings, beginning Salaries and wages expense $7,100 9,150 6,600 2,200 11,955 15,000 2,800 27,150 21,450 1,600 300 350 175 5,100 5,700 2,000 380 760 13,960 6,840 Instructions In good form (include headings), prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2023. Then compute the current ratio and the debt-to-total-assets ratios identifying which is a measure of liquidity and which is a measure of solvency. Don't forget this last part. Check figures: Retained earnings, December 31, 2023 $20,860; Total assets, $49,135 $6,600 2,000 7,000 1,000 3,000 2,100 _400 $22,100 5,200 2,000 7,200 10,000 19,000 29,000 Franklin Corporation Balance Sheet October 31, 2022 Assets Current assets Cash Debt investments Accounts receivable Notes receivable Inventory Supplies Prepaid insurance Total current assets Long-term investments Stock investments Investment in real estate Property, plant, and equipment Land Equipment $24,000 Less: Accumulated depreciation-equipment 5.000 Intangible assets Patents Total assets Liabilities and Stockholders' Equity Current liabilities Notes payable Accounts payable Unearned sales revenue Salaries and wages payable Interest payable Total current liabilities Long-term liabilities Mortgage payable Notes payable Total long-term liabilities Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 3,100 $61,400 $11,000 2,100 900 1,600 450 $16,050 10,000 1.300 11.300 27,350 14,000 20,050 34,050 $61,400