The following financial information is for Carla Vista Company. 2021 CARLA VISTA COMPANY Balance Sheets December 31 Assets 2022 Cash $69.290 Debt investments (short-term) 53,000 Accounts receivable 106,000 $ 68,060 42,000 90,000 Inventory 238,000 163,000 Prepaid expenses 24,000 27,000 Land 134.000 134,000 259,000 183,000 $883,290 $707.060 $173,974 $103.000 Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2025 Common stock, $10 par Retained earnings 66,000 54.000 40,000 40,000 250,000 208,000 169,000 208,000 133,060 145,316 Total liabilities and stockholders' equity $883,290 $707.060 CARLA VISTA COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $891,800 $792,000 Cost of goods sold 641,600 571,950 Gross profit 250,200 220,050 Operating expenses 192,233 164,610 Net income $ 57,967 $ 55,440 Additional information: 1. 2. Inventory at the beginning of 2021 was $116,000. Accounts receivable (net) at the beginning of 2021 were $90,000. Total assets at the beginning of 2021 were $634,000. No common stock transactions occurred during 2021 or 2022. 3. 4. 5. All sales were on account. (b) 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 all answers to 1 decimal places, eg. 1.8 or 1.8%. If % change is a decrease show the numbers as negative, e.g.-1.83% or (1.83%).) Ratio Return on common stockholders' equity 1. 2. Situation 20.000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $50,960. All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022, levels. Total assets on December 31, 2023, were $876,000. The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Net income for 2023 was $50,960. Debt to assets ratio 3. Price-earnings ratio 2023 2022 Return on common stockholders' equity % % Debt to assets ratio % % Price earnings ratio times times e Textbook and Media