Liabilities and Stockholders' Equity Notes payable $ 108,000 171,000 Accounts payable 65,000 50,000 Accrued liabilities 41,000 41,000 Bonds payable, due 2025 249,000 172,000 Common stock, $10 par 207,000 207,000 Retained earnings 144,000 132,000 Total liabilities and stockholders' equity $ 710,000 877,000 CRANE COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $ 896,000 $ 796,000 Cost of goods sold 648,000 574,000 Gross profit 248,000 222,000 Operating expenses 189,000 165,000 Net income $ 59,000 $ 57,000 Additional information: 1. Inventory at the beginning of 2021 was $ 117,000. 2. Accounts receivable (net) at the beginning of 2021 were $ 88,000. 3. Total assets at the beginning of 2021 were $ 642,000. 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 $ 54,000. 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 $ 898,000. 3. Price-earnings ratio The market price of common stock was $ 9 and $ 12 on December 31, 2022 and 2023, respectively. 2022 2023 % Change Return on 16.3 % 11.2 % -31 % common stockholders' equity Debt to assets ratio 59 % 40 % -32 % Price earnings ratio 3.3 times 8.9 times 170 %