1. The company by year 2015 had total liabilities of $810,000 and Stockholder's Equity of $1,468,000. By the year 2016, the balances are as follows: total liabilities of $1,101,000 and Stockholder's Equity of $1,090,000. Calculate the debt/equity and debt/capitalization rations. What do these ratios measure? 2. In 2015, the company earned a net income of $180,000. It had issued 90,000 shares. In 2016, the company earned net income of $205,000 and total shares outstanding of 75,000. Compute each year's earnings per share. What do these computed ratios mean?

3. Write the entries to record the transactions: a. The company issued 4,000 shares of $1 per common stock on March 1, 2022 for $41,000 cash. b. On December 31, the company declared cash dividends of $100,000 to be paid on February 15, 2023. c. As of today, the company has 100,000 shares outstanding at par value of $1. The company declared a 10% stock dividend when the stock was worth $20 per share.