The following is the comparative balance sheets for a caf for the years ending 31 December 2020 and 2021.

	2020	2021
	$	$
Assets
Furniture and equipment	27,900	35,100
Accumulated depreciation	(6,300)	-8,100
Cash	26,640	28,080
Account receivable	14,940	13,860
Food and beverage inventories	14,220	17,460
Total assets	77,400	86,400
Liabilities and Shareholders Equity
Account payable	10,080	14,040
Income tax payable	2,520	360
Long-term loan	46,440	50,040
Equity shares	7,560	9,360
Retained earnings	10,800	12,600
Total Liabilities and Shareholders Equity	77,400	86,400

Additional information:

1. Net income for the year 2020 is $12,600. The annual depreciation of $1,800 was included as an expense to arrive at net income.
2. New shares of 180 shares at $10 each were issued. iii. The long-term loan was increased by $3,600.

4. Dividends of $10,800 were paid out.
5. New equipment costing $7,200 was purchased.

Required:

1. Based on the above statement, calculate current ratio for both years.
2. Calculate the working capital for the year 2020 and 2021. Comment on the ratio performance calculated in (a) above.
3. Calculate the retained earnings at 31 December 2020
4. Prepare the Statement of Cash Flow for the year ended 31 December 2021.