"The balances in the accounts of M Company at December 31, 2008 are as follows: Accounts payable $ 119,000, Accounts receivable $139.200, Advertising expenditure $12.000, Accumulated Depreciation - Buildings $31.500, Uncollectible accounts $2.550, Buildings $315.000, Capital assets, $ 10 par $ 450.000, Cash $ 45.750, Dividends $ 12.000, Freight $10.500, Shipping and insurance $2.100, Interest expense $5.295, Interest income $1.335, Inventory, December 31, 2007 $104.850, Land $78.000, Long-term investments $12.150, Mortgage payable $43.500, Notes Payable - Short-term $24.000, Office expenses $ 28.800, Shopping $521.130, Discounts for the purchase $12.150, Retained earnings, December 31, 2007 $13.695, Sales $ 745.000, Discounts of sales $24.750, Returns of sales $14.400, Cost of sales $94.050, Articles expenses $3.450, Real property taxes and payroll $19.305. Instructions: 3. Use the process of financial reasons to make a brief statement analysis financial: • Liquidity: Two reasons: ° Current Liquidity No acid test • Profitability: Four reasons: ° Return on Investment ° Return on assets ° Return on sales ° Return on equity 4. Prepare a written report on the results obtained from the company in terms of liquidity, profitability, efficiency (return on assets) and for reasons of comparison with previous years: Reasons 2006: Current Liquidity 3.1x, Acid Test .8 x, Return on Sales 1.5%, Return on Assets 3.8%, Return on Equity 9.8%, Debt ratio 45.7%. Reasons 2007: Current Liquidity 2.9x, Acid Test .6 x, Return on Sales 1.5x, Return on Assets 3.5%, Return on Equity 9.2%, Debt ratio 48.5%. Note: Use the accounting system by accumulation.