Note: It is a complete question

Problem 2-1: Preparing Financial Statements

Using the following data:
1. Prepare an income statement in good form
2. Prepare end of year balance sheet in good form
3. Calculate net working capital
4. Calculate the debt ratio
DATA	SAR
Depreciation expense	75,000
Cash	250,000
Long-Term Debt	450,000
Net Sales	750,000
Accounts payable	98,000
Marketing and general and administrative expenses	110,000
Buildings and Equipment	950,000
Notes payable	80,000
Accounts receivable	165,000
Interest expense	5,250
Accrued expenses	8,500
Common Stock	350,000
Cost of Goods sold	250,000
Inventory	105,000
Taxes	72,000
Retained earnings	245,750