CRANE COMPANY CRANE COMPANY Balance Sheets Income Statements December 31 For the Years Ended December 31 Assets 2022 2021 2022 2021 Cash $ 69,000 $ 69,000 Sales revenue $893,000 $782,000 Debt investments (short-term) 51,000 39,000 105,000 90,000 Cost of goods sold 648,000 575,000 Accounts receivable Inventory 230,000 168,000 Gross profit 245,000 207,000 Prepaid expenses 24,000 26,000 Operating expenses 195,000 161,000 Land 129,000 129,000 Net income $ 50,000 $ 46,000 Building and equipment (net) 262,000 183,000 Total assets $870,000 $704,000 Liabilities and Stockholders' Equity Additional information: Notes payable $171,000 $109,000 Accounts payal 66,000 52,000 1. Inventory at the beginning of 2021 was $116,000. Accrued liabilities 40,000 40,000 2 . Accounts receivable (net) at the beginning of 2021 were $ Bonds payable, due 2025 252,000 172,000 3 . Total assets at the beginning of 2021 were $636,000. Common stock, $10 par 205,000 205,000 4 . No common stock transactions occurred during 2021 or 20 Retained earnings 136,000 126,000 5 . $870,000 $704,000 All sales were on account. Total liabilities and stockholders' equity (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 O decimal places, e.g. 15 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to O 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 Return on common $53,000. stockholders' equity 2. All of the notes payable were paid in 2023. All other liabilities remained at their December 31, Debt to assets ratio 2022 levels. Total assets on December 31, 2023, were $905,000. 3. The market price of common stock was $9 and $13 on December 31, 2022 and 2023, Price-earnings ratio respectively. 2022 2023 % Change Return on common 23.55 0.84 % stockholders' 24.39 % equity Debt to assets 28.96 27.84 1.12 ratio Price earnings 0.9 times 1.3 times 0.4 % ratio JILUGLIVII naLu