The following financial information is for Cullumber Company. upport CULLUMBER COMPANY Balance Sheets December 31 Assets 2017 2016 Cash Debt investments (short-term) Accounts receivable Inventory $ 72,000 $68,000 51,000 42,000 109,000 92,000 237,000 169,000 28,000 25,000 131,000 131,000 259,000 186,000 $887,000 $713,000 Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable $169,000 $109,000 69,000 50,000 Accounts payable Accrued liabilities Bonds payable, due 2017 Common stock, $10 par 41,000 41,000 252,000 170,000 209,000 209,000 147,000 134,000 $887,000 $713,000 Retained earnings Total liabilities and stockholders' equity CULLUMBER COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue $899,000 $789,000 Cost of goods sold 576,000 Gross profit 213,000 646,000 253,000 192,000 $61,000 Operating expenses 159,000 $54,000 Net income Additional information: 1. Inventory at the beginning of 2016 was $117,000. 2. Accounts receivable (net) at the beginning of 2016 were $90,000. 3. Total assets at the beginning of 2016 were $634,000. 4. No common stock transactions.occurred during 2016 or 2017 5. All sales were on account. Compute the liquidity and profitability ratios of Cullumber Company for 2016 and 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g.-1.83% or (1.83%).) 2016 2017 % Change LIQUIDITY Current ratio Accounts receivables turnover times times Inventory turnover times times 2016 2017 % Change PROFITABILITY * Profit margin Asset turnover times times Return on assets * Earnings per share * 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. Net income for 2018 was $55,000. Total assets on December 31, 2018, were $877,000. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g.-1.83% or (1.83%).) Situation Ratio 1. 20,000 shares of common stock were sold at par on July 1, 2018. Return on common stockholders' equity Debt to assets ratio 2. All of the notes payable were paid in 2018. 3. Price-earnings ratio The market price of common stock was $9 and $12 on December 31, 2017 and 2018, respectively. 2017 2018 % Change Return on common stockholders' equity Debt to assets ratio Price earnings ratio times times eTextbook and Media