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, 2022, and (2) as of December 31, 2023, after giving effect to the situation. (Round debt to assets ratio to decimal places, eg. 15% and other answers to 1 decimal place, es. 6.8 or 6.8%.) Ratio (1) Situation 29,700 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $ 89.100, and there were no dividends. All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022, levels. At December 31, 2023, total assets were $ 1,485,000. The market price of common stock was $ 15 and $ 20 on December 31, 2022 and 2023, respectively, Net income for 2023 was $ 89,100. (Use a simple average calculation for EPS.) Return on common stockholders' equity Debt to assets ratio (2) (3) Price-earnings ratio 2022 2023 Return on common stockholders' equity % % Debt to assets ratio % Price-earnings ratio times times Sandhill Company Balance Sheets December 31 Assets 2022 2021 Cash $ 115,500 $ 107,250 90.750 66,000 171,600 148,500 Debt investments (short-term) Accounts receivable (net) Inventory Prepaid expenses 379,500 272,250 41,250 37.950 214,500 214,500 Land Building and equipment (net) 429,000 305,250 Total assets $ 1,442,100 $ 1,151,700 Liabilities and Stockholders' Equity $ 280,500 $198,000 Notes payable (current) Accounts payable 107.250 85,800 66,000 66,000 Accrued liabilities Bonds payable, due 2025 Common stock, $10 par 412,500 280,500 330,000 330,000 Retained earnings 245,850 191,400 Accrued liabilities 66,000 66,000 Bonds payable, due 2025 412,500 280,500 Common stock. $10 par 330,000 330,000 Retained earnings 245,850 191,400 Total liabilities and stockholders' equity $ 1,442,100 $ 1,151,700 Sandhill Company Income Statement For the Years Ended December 31 2022 2021 Net sales $ 1,455,300 $ 1,303,500 Cost of goods sold 1,056,000 948,750 Gross profit 399,300 354,750 Operating expenses 313,500 275,550 Net income $ 85,800 $ 79,200 Additional information: 1. Inventory at the beginning of 2021 was $ 189,750. 2. 3. Accounts receivable (net) at the beginning of 2021 were $ 141,900. Total assets at the beginning of 2021 were $ 1,089,000. No common stock transactions occurred during 2021 or 2022. 4. 5. All sales were on credit. 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, e.g. 1.65, and all other answers to 1 decimal place, eg. 6.8 or 6.8%) 2021 2022 LIQUIDITY Current ratio 181 :1 1.76 :1 Accounts receivable turnover 8.9 times 9.1 times Inventory turnover 4.1 times 3.3 times PROFITABILITY Profit margin 6.1 % 5.8 % Asset turnover 1.16 times 1.12 times Return on assets 7.1 % 6.6 % Earnings per share 2.4 $ 26 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, 2022, and (2) as of December 31, 2023, after giving effect to the situation (Round debt to assets ratio to o decimal places, eg. 15% and other answers to 1 decimal place, eg, 6.8 or 6.8%) Ratio (1) Return on common stockholders' equity (2) Situation 29,700 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $ 89,100, and there were no dividends. All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022. levels. At December 31, 2023, total assets were $ 1,485,000 The market price of common stock was $ 15 and $ 20 on December 31, 2022 and 2023, respectively . Net income for 2023 was $ 89,100. (Use a simple average calculation for EPS) Debt to assets ratio (3) Price-earnings ratio 2022 2023 % % Return on common stockholders' equity % 96 Debt to assets ratio Price-earnings ratio times times