The following financial information is for Crane Company. CRANE COMPANY Balance Sheets December 31 Assets Cash Debt investments (short-term) Accounts receivable Inventory Prepaid expenses Land 2017 2016 $72,000 $64,000 54,000 42,000 104,000 91,000 230,000 165,000 22,00025,000 134,000 134,000 261,000 189,000 $877,000 $710,000 uilding and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2017 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity $171,000 $108,000 65,000 50,000 41,000 41,000 249,000 172,000 207,000 207,000 144,000 132,000 $710,000 $877,000 CRANE COMPANY Income Statements For the Years Ended December 31 2017 2016 $896,000 $796,000 Sales revenue Cost of goods sold Gross profit Operating expenses Net income 648,000 248,000 222,000 189,000 $59,000 $57,000 574,000 165,000 Additional information: 1. Inventory at the beginning of 2016 was $117,000. Accounts receivable (net) at the beginning of 2016 were $88,000. Total assets at the beginning of 2016 were $642,000. No common stock transactions occurred during 2016 or 2017 All sales were on account. 2. 3. 4. 5. (a1) Compute the liquidity and profitability ratios of Crane Compamy for 2016 and 2017 Round all answers to 2 decimal places, e 1.83 or 1.83%.f% change is a decrease show the numbers as negative, eg 1.83% or (1.83%) 2016 2017 % Change LIQUIDITY Current ratio Accounts receivables turnover Inventory turnover times times times times % Change 2016 2017 PROFITABILITY Profit margin Asset turnover Return on assets Earnings per share times times Given below are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31,2017, and (2) as of December 31,2018, after giving effect to the situation. Round all answers to 2 decimal places, e 1.83 or 1.83%. t1% change is a decrease show the numbers as negative, e 1.83% or 1.83%) Situation Ratio Return on common stockholders' equity 1. 20,000 shares of common stock were sold at par on July 1,2018. Net income for 2018 was $54,000 Debt to assets ratio 2. All of the notes payable were paid in 2018. All other liabilities remained at their December 31,2017 levels. Total assets on December 31,2018, were $898,000. Price-earnings ratio 3. Themarket price of common stock was $9 and $12 on December 31, 2017 and 2018, respectively. 2017 % Change 2018 Return on common stockholders' equity Debt to assets ratio Price earnings ratio times times