ole Company Balance Sheets December 31 Assets 2025 2024 Cash $70,000 $69,000 Debt investments (short-term) 51,000 40,000 Accounts receivable (net) 107,000 92,000 Inventory 234,000 167,000 Prepaid expenses 26,000 23,000 Land 135,000 135,000 Building and equipment (net) 261,000 184,000 Total assets $884,000 $710,000 Liabilities and Stockholders' Equity Notes payable (current) $172,000 $106,000 Accounts payable 66,000 52,000 Accrued liabilities 42,000 42,000 Bonds payable, due 2028 251,000 170,000 Common stock, $10 par 204,000 204,000 Retained earnings 149,000 136,000 Total liabilities and stockholders' equity $884,000 $710,000 Oriole Company Income Statements For the Years Ended December 31 2025 2024 Net sales $882,000 $781,000 Cost of goods sold 641,000 574,000 Gross profit 241,000 207,000 Operating expenses 190,000 160,000 Net income $51,000 $47,000 Additional information: 1. Inventory at the beginning of 2024 was $117,000. 2. Accounts receivable (net) at the beginning of 2024 were $88,000. 3. Total assets at the beginning of 2024 were $631,000. 4. No common stock transactions occurred during 2024 or 2025. 5. 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, 2025, and (2) as of December 31, 2026, and percentage change in each ratio 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 & intermediate calculation to two decimal places wherever required, e.g. 15.5. Round % change to O decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g. -1% or (19).) Situation 1. 19,000 shares of common stock were sold at par on July 1, 2026. Net income for 2026 was $55,000, and there were no dividends. 2. All of the notes payable were paid in 2026. All other liabilities remained at their December 31, 2025, levels. Total assets on December 31, 2026, were $885,000. 3. The market price of common stock was $9 and $12 on December 31, 2025 and 2026, respectively. Net income for 2026 was $55,000. (Use a simple average calculation for EPS.) Return on common stockholders' equity Debt to assets ratio Price-earnings ratio 2025 96 times 2026 % Change % % 96 % times % Ratio Return on common stockholders' equity Debt to assets ratio Price-earnings ratio