*Problem 13-04A a1,b (Video) The following financial information is for Cullumber Company. Cullumber Company Balance Sheets December 31 Assets 2020 Cash $ 70,000 Debt investments (short-term) 53,000 Accounts receivable 108,000 Inventory 229,000 Prepaid expenses 30,000 Land 130,000 Building and equipment (net) 264,000 Total assets $884,000 Liabilities and Stockholders' Equity Notes payable $172,000 Accounts payable 65,000 Accrued liabilities 41,000 Bonds payable, due 2023 250,000 Common stock, $10 par 202,000 Retained earnings 154,000 2019 $ 64,000 39,000 90,000 162,000 25,000 130,000 185,000 $695,000 $102,000 51,000 41,000 172,000 202,000 127,000 Total liabilities and stockholders' equity $884,000 $695,000 Cullumber Company Income Statements For the Years Ended December 31 2020 2019 Sales revenue $890,000 $786,000 Cost of goods sold 641,000 575,000 Gross profit 249,000 211,000 Operating expenses 194,000 159,000 Net income $ 55,000 $ 52,000 Additional information: i. Inventory at the beginning of 2019 was $116,000. 2. Accounts receivable (net) at the beginning of 2019 were $90,000. Total assets at the beginning of 2019 were $642,000. 4. No common stock transactions occurred during 2019 or 2020. 5. All sales were on account. Compute the liquidity and profitability ratios of Cullumber Company for 2019 and 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 1.839. It negative, e.g.-1.839 or (1.839).) change is a decrease show the numbers as 2019 2020 W change LIQUIDITY Current ratio Accounts receivables turnover times times Inventory turnover times times 2019 2020 Ye Change PROFITABILITY Profit margin Asset turnover Return on assets Earnings per share (b) 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, 2020, and (2) as of December 31, 2021, after giving effect to the situation. (Round all answers to 2 decimal places, e.g. 1.8.3 or 1.8396. If % change is a decrease show the numbers as negative e.. .839 or (1.83 ). 1. 2. 3. Situation 18,000 shares of common stock were sold at par on July 1, 2021. Net income for 2021 was $53,000. All of the notes payable were paid in 2021. All other liabilities remained at their December 31, 2020, levels. At December 31, 2021, total assets were $904,000 The market price of common stock was $9.00 and $13.00 on December 31, 2020 and 2021, respectively. Net income for 2021 was $53,000. Ratio Return on common stockholders' equity Debt to assets ratio Price-earnings ratio 2020 2021 Change Return on common stockholders equity Debit to assets ratio Price earnings ratio times times Question Attempts: 0 of 5 used