CRANE COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $893,000 $782,000 Cost of goods sold 648,000 575,000 Gross profit 245,000 207,000 Operating expenses 195,000 161,000 Net income $50,000 $46,000 Additional information: 1. Inventory at the beginning of 2021 was $116,000. 2. Accounts receivable (net) at the beginning of 2021 were $88,000. 3. Total assets at the beginning of 2021 were $636,000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account. 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%).) 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 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 The market price of common stock was $9 and $13 on December 31, 2022 and 2023, respectively Price-earnings ratio 2022 2023 % Change Return on common stockholders' equity 14,88 % 11.33 % 0.8 % Debt to assets ratio 8.95 % 28.96 % 401 times Price earnings ratio 5.01 times