CRANE COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $69,000 $69,000 Debt investments (short-term) Accounts receivable Inventory Prepaid expenses 51,000 39,000 105,000 90,000 230,000 168,000 24,000 25.000 129,000 129,000 262,000 183,000 $870,000 $704,000 Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2025 $171,000 $109,000 66,000 52,000 40,000 40,000 252,000 172,000 205,000 205,000 136,000 126,000 $870,000 $704,000 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity 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 , of December 31, 2023, after giving effect to the situation. (Round Debt to assets ratio to o 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%).) Situation Ratio 1. 20,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $53,000 Return on common stockholders' equity 2. Debt to assets ratio 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 $905,000. 3. Price-earnings ratio The market price of common stock was $9 and $13 on December 31, 2022 and 2023, respectively 2022 2023 % Change Return on common stockholders' equity Debt to assets ratio Price earnings ratio times times e Textbook and Media