ACCT 2110 Exercise Chapter 2: These items are taken from the accounting records of Entity A at its December 31, 2022 year end. Accounts payable S 8341 Accounts receivable 810 Building Cash Accumulated depreciation building Common stock Copyright 670 2,420 1,270 16,900 1,800 Depreciation expense 335 Dividends 325 Income tax expense 165 Income tax payable 135 Insurance expense 210 Interest expense 400 Inventory 967 Investment in land 14,200 Land 3,100 Marketable securities (short-term) 1,200 Mortgage payable (due 2032) 3,500 Note payable (due 2023) 61 Prepaid insurance 60 Retained earnings (beginning) 1,600 Salaries and wages expense 1,060 Salaries and wages payable Service revenue Supplies expense 222 5,100 700 Instructions In good form (include headings), prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2022. 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.