no common stock transactions occurred during 2021 or 2022.

all sales were on credit.

The following 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 decimal places, eg. 15% and other answers to 1 decimal place, 6.3.6.8 or 6.8%) (1) Situation 35,100 shares of common stock were sold at par on July 1, 2023. Net Income for 2023 was $ 105,300, and there were no dividends. All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022 levels. At December 31, 2023, total assets were $ 1,755,000 The market price of common stock was $ 18 and $ 23 on December 31, 2022 and 2023, respectively. Net income for 2023 was $ 105,300. (Use a simple average calculation for EPS) Ratio Return on common stockholders equity Debt to assets ratio (2) (3) Price carnings ratio 2022 2023 % % Return on common stockholders' equity % 96 Debt to assets ratio times times Price-earnings ratio Assets 2022 2021 Cash $ 136,500 $ 126,750 Debt investments (short-term) 107,250 78,000 Accounts receivable (net) 202,800 175,500 Inventory 448,500 321,750 Prepaid expenses 48,750 44,850 Land 253,500 253,500 Building and equipment (net) 507,000 360,750 Total assets $ 1,704,300 $ 1,361,100 Liabilities and Stockholders' Equity Notes payable (current) $331,500 $234.000 Accounts payable 126,750 101,400 Accrued liabilities 78,000 78,000 Bonds payable, due 2025 487,500 331,500 Common stock, $10 par 390,000 390,000 Retained earnings 290,550 226,200 Total liabilities and stockholders' equity $ 1,704,300 $ 1,361,100 Sunland Company Income Statement For the Years Ended December 31 2022 2021 Net sales $ 1,719,900 $ 1,540,500 Cost of goods sold 1,248,000 1,121,250 Gross profit 471,900 419,250 Operating expenses 370,500 325,650 Net income $ 101,400 $ 93,600 Additional information: 1. Inventory at the beginning of 2021 was $ 224,250. 2. Accounts receivable (net) at the beginning of 2021 were $ 167,700. 3. Total assets at the beginning of 2021 were $ 1,287,000