Sandhill Company Balance Sheets December 31 Assets 2022 2021 Cash $77,000 $71,500 Debt investments (short-term) Accounts receivable (net) 60.500 44,000 114,400 99,000 Inventory 253,000 181,500 Prepaid expenses 27,500 25,300 Land 143,000 143,000 Building and equipment (net) 286,000 203,500 Total assets $961,400 $767,800 $187.000 $132,000 57,200 Liabilities and Stockholders' Equity Notes payable (current) Accounts payable Accrued liabilities Bonds payable, due 2025 Common stock, $10 par Retained earnings 71,500 44,000 275.000 44,000 187,000 220,000 220,000 163,900 127,600 Total liabilities and stockholders' equity $961,400 $767,800 Sandhill Company Income Statement For the Years Ended December 31 2022 2021 $970,200 $869,000 Net sales Cost of goods sold 704,000 632,500 Gross profit 266,200 236,500 Operating expenses 209,000 183,700 Net income $ 57,200 $ 52,800 Additional information: 3 1. Inventory at the beginning of 2021 was $126,500. 2. Accounts receivable (net) at the beginning of 2021 were $94,600. Total assets at the beginning of 2021 were $726,000. No common stock transactions occurred during 2021 or 2022. 5. All sales were on credit 3. 4. 5 Indicate, by using ratios, the change in liquidity and profitability of Sandhill Company from 2021 to 2022. (Round Current ratio, Asset turnover and Earnings per share to 2 decimal places, eg. 1.65, and all other answers to 1 decimal place, es. 6.8 or 6.8%) 2021 2022 LIQUIDITY :1 31 Current ratio times 9.09 times Accounts receivable turnover times times Inventory turnover PROFITABILITY 90 % Profit margin times times Asset turnover % % Return on assets Earnings per share