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The financial statements of Burrito Inc. are presented here: Burrito Inc. Statement of Income Year Ended December 31, 2021 $2,218,500 Service revenue Expenses Operating expenses $1,918,500 Interest expense 98,000 Income before income tax Income tax expense Net income Burrito Inc. Statement of Financial Position Friday, December 31, 2021 2,016,500 202,000 42,000 $160,000 Assets Current assets Cash Trading investments Accounts receivable $60,100 54,000 307,800 Assets Current assets Cash Trading investments Accounts receivable Supplies Property, plant, and equipment Total assets $60,100 54,000 307,800 25,000 $446,900 625.300 $1,072,200 Liabilities and Shareholders' Equity Current liabilities Accounts payable $100,000 Income tax payable 15,000 Current portion of mortgage payable 27.500 Mortgage payable Total liabilities Shareholders' equity Common shares $307,630 Retained earnings 312,070 Total liabilities and shareholders' equity $142,500 310,000 452,500 619,700 $1,072,200 Additional information: 1. Income available to common shareholders was $160,000. 2. The weighted average number of common shares was 40,000. 3. The share price at December 31 was $35. Instructions a. Calculate the following values and ratios for 2021. We provide the results for 2020 for comparative purposes. 1. Current ratio (2020: 16:1) 2. Debt to total assets (2020: 31.5%) 3. Basic earnings per share (2020: $3.15) 4. Price-earnings ratio (2020: 7.5 times) b. Using the information in part (a), discuss the changes in liquidity, solvency, and profitability between 2021 ar For each of the categories, indicate whether the company has improved or deteriorated and provide supporting

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