Question 3 The following financial information is for Priscoll Company. Priscoll Company Balance Sheets December 31 Assets 2020 2019 Cash Debt investments (short-term) Accounts receivable Inventory Prepaid expenses Land $ 115,500 90,750 171,600 379,500 41,250 214,500 429,000 $ 107,250 66,000 148,500 272,250 37,950 214,500 305,250 $1,151,700 Building and equipment (net) Total assets $1,442,100 Liabilities and Stockholders' Equity Notes payable (short-term) Accounts payable Accrued liabilities Bonds payable, due 2023 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity $280,500 107,250 66,000 412,500 330,000 245,850 $1,442,100 $198,000 85,800 66,000 280,500 330,000 191,400 $1,151,700 Priscoll Company Income Statement For the Years Ended December 31 2020 2019 Sales revenue $1,303,500 948,750 Cost of goods sold Gross profit Operating expenses $1,455,300 1,056,000 399,300 313,500 $ 85,800 354,750 275,550 Net income $ 79,200 Additional information: 1. 2. Inventory at the beginning of 2019 was $189,750. Accounts receivable (net) at the beginning of 2019 were $141,900. Total assets at the beginning of 2019 were $1,089,000. No common stock transactions occurred during 2019 or 2020. 3. 4. 5. All sales were on account. (a) Indicate, by using ratios, the change in liquidity and profitability of Priscoll Company from 2019 to 2020. (Round Current ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) 2019 2020 LIQUIDITY Current ratio : 1 : 1 Accounts receivable turnover times times Inventory turnover times times PROFITABILITY Profit margin % % Asset turnover times times Return on assets % % Earnings per share $ By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor