The following financial information is for Sandhill Company. SANDHILL COMPANY Balance Sheets December 31 Assets 2022 Cash $72,000 Debt investments (short-term) 51,000 Accounts receivable 108,000 Inventory 235,000 Prepaid expenses 26,000 Land 133,000 Building and equipment (net) 264,000 Total assets $889,000 Liabilities and Stockholders' Equity Notes payable $171,000 Accounts payable 69,000 Accrued liabilities 40,000 Bonds payable, due 2025 252,000 Common stock, $10 par 208,000 Retained earnings 149,000 Total liabilities and stockholders' equity $889,000 2021 $ 68,000 40,000 89,000 169,000 29,000 133,000 189,000 $717,000 $107.000 50,000 40,000 169,000 208,000 143,000 $717,000 SANDHILL COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $899,000 $786,000 Cost of goods sold 645,000 574,000 Gross profit 254,000 212,000 Operating expenses 196,000 160,000 Net income $ 58,000 $ 52,000 Additional information: 1. 2. 3. Inventory at the beginning of 2021 was $117,000. Accounts receivable (net) at the beginning of 2021 were $89,000. Total assets at the beginning of 2021 were $632,000. No common stock transactions occurred during 2021 or 2022. All sales were on account. 4. 5. (a1) Compute the liquidity and profitability ratios of Sandhill Company for 2021 and 2022. (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, eg 15.50 and round all other answers to 1 decimal place, eg 15.5. Round % change to O decimal places, foreg 1% and if % change is a decrease show the numbers as negative, es-1% or (1%)) 2021 2022 % Change 1.99 :1 1.78 :1 (10.55) % LIQUIDITY Current ratio Accounts receivables turnover Inventory turnover 8.71 times 8.96 times 2.87 % 4.07 times 3.18 times (21.86) %