\begin{tabular}{lrr} \hline Assets & LU1Y & \multicolumn{2}{c}{ZU18} \\ \hline Cash & $69,000 & $66,000 \\ Debt investments (short-term) & 50,000 & 42,000 \\ Accounts receivable & 106,000 & 92,000 \\ Inventory & 238,000 & 166,000 \\ Prepaid expenses & 25,000 & 24,000 \\ Land & 132,000 & 132,000 \\ Building and equipment (net) & 264,000 & 184,000 \\ \hline Total assets & $884,000 & $706,000 \\ \hline \hline \end{tabular} Liabilities and Stockholders' Equity \begin{tabular}{lrr} Notes payable & $169,000 & $105,000 \\ Accounts payable & 68,000 & 51,000 \\ Accrued liabilities & 42,000 & 42,000 \\ Bonds payable, due 2022 & 252,000 & 169,000 \\ Common stock, $10 par & 209,000 & 209,000 \\ Retained earnings & 144,000 & 130,000 \\ \cline { 2 - 2 } & & \end{tabular} Total liabilities and stockholders' equity $884,000$706,000 Additional information: 1. Inventory at the beginning of 2018 was $116,000. 2. Accounts receivable (net) at the beginning of 2018 were $88,000. 3. Total assets at the beginning of 2018 were $642,000. 4. No common stock transactions occurred during 2018 or 2019. 5. All sales were on account. Compute the liquidity and profitability ratios of Sandhill Company for 2018 and 2019 . (Round all answers to 2 decimal places, eg. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g. 1.83% or (1.83\%).) The following are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2019, and (2) as of December 31, 2020, after giving effect to the situation. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g. 1.83% or (1.83\%).) The following financial information is for Sandhill Company. Liabilities and Stockholders' Equity \begin{tabular}{lrrr} Notes payable & $169,000 & $105,000 \\ Accounts payable & 68,000 & 51,000 \\ Accrued liabilities & 42,000 & 42,000 \\ Bonds payable, due 2022 & 252,000 & 169,000 \\ Common stock, $10 par & 209,000 & 209,000 \\ Retained earnings & 144,000 & 130,000 \\ \hline Total liabilities and stockholders' equity & $884,000 & $706,000 \\ \hline \end{tabular} Additional information: 1. Inventory at the beginning of 2018 was $116,000. 2. Accounts receivable (net) at the beginning of 2018 were $88,000. 3. Total assets at the beginning of 2018 were $642,000. 4. No common stock transactions occurred during 2018 or 2019. 5. All sales were on account. Compute the liquidity and profitability ratios of Sandhill Company for 2018 and 2019 . (Round all answers to 2 declmal places, eg. 1.83 or 1.83\%. If \% change is a decrease show the numbers as negative, eg. 1.83% or (1.83\%)). The following are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2019, and (2) as of December 31, 2020, after giving effect to the situation. (Round all answers to 2 decimal ploces, eg. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, eg. 1.83% or (1.83%6) Situation Ratio 1. 19,000 shares of common stock were sold at par on July 1, 2020. Net income for 2020 was $52,000 Return on common stockholders' equity 2. All of the notes payable were paid in 2020 . All other liabilities remained at their December 31, 2019, levels. At December 31, 2020, total assets were $868,000. Debt to assets ratio 3. The market price of common stock was $9.00 and $12.00 on December 31,2019 and 2020 , Price-earnings ratio respectively. Net income for 2020 was $52,000
