List of accounts of the current year-end of MAN Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $7,900; accounts receivable net, $3,400.) List of accounts Accounts payable Accounts receivable Accumulated depreciation Store equipment Advertising expense Allowance for uncollectible accounts Bank loan 2 years Cash Common stock Cost of goods sold Depreciation expense-Store equipment Dividends Gain on the sale of equipment Insurance expense of store Interest expense Loss on the sale of equipment Merchandise inventory Office salaries expense Prepaid insurance Rent expense-Office space Rent expense-Selling space Retained earnings Jan. 1.2021 Sales Sales discounts Sales returns and allowances Sales salaries expense Short-term investments - Store equipment Store supplies Store supplies expense Uneared Revenue $ 7.000 4.000 15.250 8,600 750 5.000 1,000 5,000 38.400 2.500 2,200 2,300 1,000 1.300 1.700 7.750 16,500 2.400 7.500 6.200 22.000 111,950 2.000 2.200 15,000 1,500 42.900 5,800 1,800 3.000 Required: a- Prepare multiple-step income statement and classified balance sheet of the company. b- Compute the followings: (1) current ratio, (2) quick ratio, (3) receivable turnover, (4) collection period, (5) inventory turnover 6) days' of inventory on hand, (7) debt ratio, (8) debt-to-equity ratio (9) gross profit ratio C- You determine that the following ratios are typical of companies in MAN Corp.'s industry. Current ratio. 2.3 Days in inventories 20 days Debt to equity 0.55 Evaluate the situation of the company by comparing with industry average.

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