Question 3 of 3-Ch.13X SWAN-Clayton State Univers Homepage Principles of Fix 13.3 Ratio Analysis | Account -player/index.htmlaunchd-f8694ed2-2ecb-48cc-as-d4a501337722/question/2 Question 3 of 3 < > Show Attempt History Current Attempt in Progress The following financial information is for Carla Vista Company Carla Vista Company Balance Sheets December 31 Assets 2025 2024 Cash $69.000 $69.000 Debt investments (short-term 53,000 42,000 Accounts receivable (net) 106,000 90,000 Inventory 238,000 163,000 Prepaid expenses 24,000 27,000 Land 134.000 134,000 Building and equipment (net) 259.000 183,000 Total assets $883.000 $708,000 Liabilities and Stockholders' Equity Notes payable (current) $171,000 $103,000 Accounts payable 66,000 54,000 Accrued abilities 40,000 40,000 Bonds payable, due 2028 250.000 169,000 Common stock, $10 par 208.000 208,000 Retained earnings 148,000 134,000 Total abilities and stockholders' equity $3,000 $700,000 Carla Vista Company Income Statements For the Years Ended December 31 2025 2024 22.62/30 Question 3 of 3-Ch.13 Home X SWAN-Clayton State Univers x Homepage Principles of Fix 13.3 Rational Account ent-player/index.htmlaunchd-f8694ed2-2ecb-48cc-as-d4a5013377228/question/2 Question 3 of 3 < > 22.62/30 Total liabilities and stockholders' equity $883,000 $708,000 Carla Vista Company Income Statements For the Years Ended December 31 2025 2024 Net sales $890,000 $795.000 Cost of goods sold 641000 $76,000 Gross profit 249,000 219.000 Operating expenses 192.000 165.000 Net income $57,000 $54,000 Additional information L Inventory at the beginning of 2024 was $116.000 2. Accounts receivable (net) at the beginning of 2024 were $90,000. 2. Total assets at the beginning of 2024 were $634,000. 4 No common stock transactions occurred during 2024 or 2025. 5. All sales were on credit Your answer is partially correct. Compute liquidity and profitability ratios, and indicate the percentage change in liquidity and profitability ratios of Carla Vista Company from 2024 to 2025. (Note: Not all profitability ratios can be computed, nor can cash-basis ratios be computed) Round Curent ratio, Asset turnover and Eamings per share to 2 decimal places, eg 15.50 Round Xchange to O decimal places, for Round all other answers to 1 decimal place, ea 15.5 % change is a decrease show the numbers as negative, eg 2% or LIQUIDITY Current ratio 2025 2024 % Change Question 3 of 3 < No common stock transactions occurred during 2024 or 2025. 4. 5. All sales were on credit. 22.62/30 E Your answer is partially correct. Compute liquidity and profitability ratios, and indicate the percentage change in liquidity and profitability ratios of Carla Vista Company from 2024 to 2025. (Note: Not all profitability ratios can be computed, nor can cash-basis ratios be computed.) (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, eg 15.50. Round % change to 0 decimal places, for eg. 1%. Round all other answers to 1 decimal place, e.g. 15.5. If % change is a decrease show the numbers as negative, eg. -1% or (1%)) 2025 2024 % Change LIQUIDITY Current ratio 1.76 :1 1.98 :1 -111 % Accounts receivable 9.08 times 8.8 times 31 % turnover Inventory turnover 2025 ITABILITY margin turnover non assets 3.2 times 41 times 64 % 2024 67 % % Change -21 % % 1.12 times 1.18 times -5 % 71 % gs per share $ 2.74 eTextbook and Media % $ 2.59 -11 % 5.7 % -Ch13 Home x SWAN-Clayton State Univers Homepage-Principles of Fina 13.3 Ratio Analysis | Account f8694ed2-2ecb-48cc-8fas-d4a5013377228/question/2 Question 3 of 3 < > 22.62/30 E E Your answer is partially correct. 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 O decimal places, es. 15 and round all other answers to 1 decimal place & intermediate calculation to two decimal places wherever required, es 15.5. Round % change to 0 decimal places, for eg. 1% endif % change is a decrease show the numbers as negative, eg-1% or (15) 1. 2. 3. Situation 20,000 shares of common stock were sold at par on July 1, 2026. Net income for 2026 was $51,000, 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 $876,000. The market price of common stock was $9 and $12 on December 31, 2025 and 2026, respectively. Net income for 2026 was $51,000. (Use a simple average calculation for EPS) Ratio Return on common stockholders' equity Debt to assets ratio Price-earnings ratio 2025 olders equity 163 eTextbook and Media Save for Later 59 % 3.28 times 2026 40 % times *Change -32 % % Attempts: 4 of 5 used Submit Answer