The following financial information is for Pharoah Company. PHAROAH COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $72,000 $ 69,000 Debt investments (short-term) 54,000 39,000 Accounts receivable 107,000 90,000 Inventory 236,000 162,000 Prepaid expenses 30,000 27,000 Land 133,000 133,000 Building and equipment (net) 260,000 188,000 Total assets $892,000 $708,000 Liabilities and Stockholders' Equity Notes payable $170,000 $106,000 Accounts payable 65,000 54,000 Accrued liabilities 42,000 42,000 Bonds payable, due 2025 250,000 171,000 Common stock, $10 par 209,000 209,000 Retained earnings 156,000 126,000 Total liabilities and stockholders' equity $892,000 $708,000 PHAROAH COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $898,000 $789,000 Cost of goods sold 647,000 575,000 Gross profit 251,000 214,000 Operating expenses 194,000 160,000 Net income $57,000 $54,000 Additional information: 1. Inventory at the beginning of 2021 was $115,000. 2. Accounts receivable (net) at the beginning of 2021 were $89,000. 3. Total assets at the beginning of 2021 were $633,000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account. (a1) Compute the liquidity and profitability ratios of Pharoah Company for 2021 and 2022. (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 15.50 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to O decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g. -1% or (1%).) LIQUIDITY Current ratio Accounts receivables turnover Inventory turnover PROFITABILITY Profit margin Asset turnover Return on assets Earnings per share +A $ 2021 2021 :1 2022 :1 times times times de % 2022 times % times 1.18 times de % +A $ de % % Change % do % do % % Change (b) 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, 2022, and (2) as of December 31, 2023, after giving effect to the situation. (Round Debt to assets ratio to 0 decimal places, e.g. 15 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to 0 decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g. -1% or (1%).) 1. 2. Situation Ratio 20,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $55,000. Return on common stockholders' equity 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 $895,000. Debt to assets ratio 3. The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Return on common stockholders' equity Debt to assets ratio Price earnings ratio eTextbook and Media 2022 do % 2023 % de % % times times Price-earnings ratio % Change % do % %