Question $2$ of $4$

$\frac{7\mathrm{.}14}{30}$

Your answer is incorrect.

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, es$,15$ and round all other answers to $1$ decimal place & intermediate calculation to two decimal places wherever required, es $15\mathrm{.}5.$ Round $\%$ change to $0$ decimal places, for eg$.1\%$ and if $\%$ change is a decrease show the numbers as negative, eg$.1\%$ or $(194)$

Situation

$18,000$ shares of common stock were sold at par on July $1,2026.$ Net income for $2026$ was $$52,000,$ and there were no dividends.

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 $$903,000.$

The market price of common stock was $$9$ and $$12$ on December $31,2025$ and $2026,$ respectively. Net income for $2026$ was $$52,000.($Use a simple average calculation for EPS.$)$

Ratio

Return on common stockholders' equity

Debt to assets ratio

Price$-$earnings ratio

Price$-$earnings ratio