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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,

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.

18,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $55,000.

Return on common stockholders equity

2.

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 $906,000.

Debt to assets ratio

3.

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

enter percentages

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% enter percentages

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% enter percentages

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%

Debt to assets ratio

enter percentages

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% enter percentages

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% enter percentages

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%

Price earnings ratio

enter a price earnings ratio in times

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times enter a price earnings ratio in times

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times enter percentages

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%

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