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The following financial information is for Oriole Company ORIOLE COMPANY Balance Sheets December 31 Assets 2022 Cash $69,200 Debt investments (short-term) 51.000 Accounts receivable 107.000

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The following financial information is for Oriole Company ORIOLE COMPANY Balance Sheets December 31 Assets 2022 Cash $69,200 Debt investments (short-term) 51.000 Accounts receivable 107.000 Inventory 234,000 Prepaid expenses 26.000 Land 135.000 Building and equipment Inet) 261.000 Total assets $883.200 Liabilities and Stockholders' Equity Notes payable $170.920 Accounts payable 66.000 Accrued abilities 42.000 Boods payable due 2025 251000 Common stock 50 a 204.000 2021 $70,000 40.000 92.000 167,000 23.000 135.000 184000 $711000 $106.000 522000 -2000 170.000 204.000 137.000 571.000 Totalbits and stockholder ulty ORIOLE COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $885,550 $783,000 Cost of goods sold 641.600 568,000 Gross profit 243.950 215.000 Operating expenses 190.817 160.190 Net Income $ 53.133 $ 54,810 Additional Information: 1 2 Inventory at the beginning of 2021 was $117.000 Accounts receivable neti at the beginning of 2021 were 588.000 Total assets at the beginning of 2021 were 5631000 No common stock transactions occurred during 2021 2022 Alles were on account Question 3 of 3 0.9572 Attempts: 2 of 2 used (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, es 1.8 or 1.8% 1 % change is a decrease show the numbers as negative, eg. -1.83% or (1.83%)) Situation Ratio 1. 19,000 shares of common stock were sold at par on July 1, 2023. Net Return on common stockholders' equity income for 2023 was $ 55,080. 2 All of the notes payable were paid in 2023. All other liabilities remained at Debt to assets ratio their December 31, 2022 levels. Total assets on December 31, 2023, were $885,000 3 The market price of common stock was $ 9 and $ 12 on December 31, 2022 Price-earnings ratio and 2023, respectively. Net income for 2023 was $ 55,080, 2023 2022 3 The market price of common stock was $9 and $ 12 on December 31, 2022 and 2023, respectively. Net income for 2023 was $ 55,080. Price-earnings ratio 2023 2022 Return on common stockholders' equity % % Debt to assets ratio % Price earnings ratio times times Question 3 of 3

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