ASsets 2022 2021 $ 72,000 $ 64,000 Cash 54,000 Debt investments (short-term) 42,000 104,000 91,000 Accounts receivable 230,000 165,000 Inventory Prepaid expenses 22,000 25,000 134,000 Land 134,000 261,000 189,000 Building and equipment (net) $877,000 $710,000 Total assets Liabilities and Stockholders' Equity $171,000 $108,000 Notes payable 65,000 Accounts payable 50,000 Accrued liabilities 41,000 41,000 249,000 172,000 Bonds payable, due 2025 Common stock, $10 par 207,000 207,000 144,000 132,000 Retained earnings $877,000 $710,000 Total liabilities and stockholders' equity CRANE COMPANY Income Statements For the Years Ended December 31 2022 2021 $796,000 Sales revenue $896,000 648,000 574,000 Cost of goods sold Gross profit 248,000 222,000 Operating expenses 189,000 165,000 $ 59,000 $ 57,000 Net income Additional information: 1. Inventory at the beginning of 2021 was $117,000. 2. Accounts receivable (net) at the beginning of 2021 were $88,000. 3. Total assets at the beginning of 2021 were $642,000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account. (a1) Compute the liquidity and profitability ratios of Crane Company for 2021 and 2022. (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 15.50 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to 0 decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g. -1% or (1%).) 2022 % Change 2021 LIQUIDITY :1 :1 Current ratio times times Accounts receivables turnover times times Inventory turnover % Change 2021 2022 PROFITABILITY Profit margin % times times % Asset turnover % % Return on assets Earnings per share (b) Given below are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2022, and (2) as of December 31, 2023, after giving effect to the situation. (Round Debt to assets ratio to 0 decimal places, e.g. 15 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to 0 decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g. -1% or (1%).) Ratio Situation 1. 20,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $54,000. Return on common stockholders" equity 2. All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022 levels. Total assets on December 31, 2023, were $898,000. 3. The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Debt to assets ratio Price-earnings ratio 2023 % Change 2022 % Return on common stockholders' equity Debt to assets ratio times times Price earnings ratio Open Show Work Click if you would like to Show Work for this question: ASsets 2022 2021 $ 72,000 $ 64,000 Cash 54,000 Debt investments (short-term) 42,000 104,000 91,000 Accounts receivable 230,000 165,000 Inventory Prepaid expenses 22,000 25,000 134,000 Land 134,000 261,000 189,000 Building and equipment (net) $877,000 $710,000 Total assets Liabilities and Stockholders' Equity $171,000 $108,000 Notes payable 65,000 Accounts payable 50,000 Accrued liabilities 41,000 41,000 249,000 172,000 Bonds payable, due 2025 Common stock, $10 par 207,000 207,000 144,000 132,000 Retained earnings $877,000 $710,000 Total liabilities and stockholders' equity CRANE COMPANY Income Statements For the Years Ended December 31 2022 2021 $796,000 Sales revenue $896,000 648,000 574,000 Cost of goods sold Gross profit 248,000 222,000 Operating expenses 189,000 165,000 $ 59,000 $ 57,000 Net income Additional information: 1. Inventory at the beginning of 2021 was $117,000. 2. Accounts receivable (net) at the beginning of 2021 were $88,000. 3. Total assets at the beginning of 2021 were $642,000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account. (a1) Compute the liquidity and profitability ratios of Crane Company for 2021 and 2022. (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 15.50 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to 0 decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g. -1% or (1%).) 2022 % Change 2021 LIQUIDITY :1 :1 Current ratio times times Accounts receivables turnover times times Inventory turnover % Change 2021 2022 PROFITABILITY Profit margin % times times % Asset turnover % % Return on assets Earnings per share (b) Given below are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2022, and (2) as of December 31, 2023, after giving effect to the situation. (Round Debt to assets ratio to 0 decimal places, e.g. 15 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to 0 decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g. -1% or (1%).) Ratio Situation 1. 20,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $54,000. Return on common stockholders" equity 2. All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022 levels. Total assets on December 31, 2023, were $898,000. 3. The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Debt to assets ratio Price-earnings ratio 2023 % Change 2022 % Return on common stockholders' equity Debt to assets ratio times times Price earnings ratio Open Show Work Click if you would like to Show Work for this