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, 2016, and (2) as of December 31, 2017, after giving effect to the situation. Net income for 2017 was 88,000. Total assets on December 31, 2017, were 1,232,000. (Round ratios to 1 decimal place, e.g. 6.8 or 6.8%.) (1) (2) (3) Situation 31,680 ordinary shares were sold at par on July 1, 2017. There were no dividends in 2017. All of the notes payable were paid in 2017. The only change in liabilities was that the notes payable were paid. Market price of ordinary shares was 16 on December 31, 2016, and 22.00 on December 31, 2017. Ratio Return on ordinary shareholders' equity Debt to total assets Price-earnings ratio 2016 2017 Change Return on ordinary shareholders' equity % Debt to total assets % Price-earnings ratio 2. times times 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, 2016, and (2) as of December 31, 2017, after giving effect to the situation. Net income for 2017 was 88,000. Total assets on December 31, 2017, were 1,232,000. (Round ratios to 1 decimal place, e.g. 6.8 or 6.8%.) (1) (2) (3) Situation 31,680 ordinary shares were sold at par on July 1, 2017. There were no dividends in 2017. All of the notes payable were paid in 2017. The only change in liabilities was that the notes payable were paid. Market price of ordinary shares was 16 on December 31, 2016, and 22.00 on December 31, 2017. Ratio Return on ordinary shareholders' equity Debt to total assets Price-earnings ratio 2016 2017 Change Return on ordinary shareholders' equity % Debt to total assets % Price-earnings ratio 2. times times