The following financial information is for Sheridan Company. SHERIDAN COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $ 71,000 $ 66,000 Debt investments (short-term) 55,000 40,000 Accounts receivable (net) 103,000 90,000 Inventory 229,000 169,000 Prepaid expenses 29,000 28,000 Land 132,000 132,000 Building and equipment (net) 259,000 184,000 Total assets $878,000 $709,000 Liabilities and Stockholders' Equity Notes payable (current) $169,000 $102,000 Accounts payable 65,000 53,000 Accrued liabilities 41,000 41,000 Bonds payable, due 2025 251,000 170,000 Common stock, $10 par 200,000 200,000 Retained earnings 152,000 143,000 Total liabilities and stockholders' equity $878,000 $709,000 SHERIDAN COMPANY Income Statements For the Years Ended December 31 2022 $880,000 645,000 235,000 184,000 $ 51,000 Net sales Cost of goods sold Gross profit Operating expenses Net income 2021 $784,000 574,000 210,000 160,000 $ 50,000 Compute the liquidity and profitability ratios of Sheridan Company for 2021 and 2022. (Round current ratio, asset turnover and earnings per share to 2 decimal places, e.g. 1.83 or 1.83%. Round accounts receivables turnover, inventory turnover, profit margin and return on assets to 1 decimal place, e.g. 1.8 or 1.8%. Round % change to 0 decimal places, e.g. 25%. If % change is a decrease show the numbers as negative, e.g. -25% or (25) %.) 2022 2021 LIQUIDITY Current ratio :1 :1 Accounts receivables turnover times times Inventory turnover times times PROFITABILITY Profit margin Asset turnover Return on assets Earnings per share $ 2022 % times % $ 2021 % times % Compute the liquidity and profitability ratios of Sheridan Company for 2021 and 2022. (Round current ratio, asset turnover and earnings per share to 2 decimal places, e.g. 1.83 or 1.83%. Round accounts receivables turnover, inventory turnover, profit margin and return on assets to 1 decimal place, e.g. 1.8 or 1.8%. Round % change to 0 decimal places, e.g. 25%. If % change is a decrease show the numbers as negative, e.g. -25% or (25)%.) 2022 2021 % Change :1 :1 times times times times % times % 2022 % times % 2021 % Change % % % % % % % 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 return on common stockholders' equity and price earnings ratio to 1 decimal place, e.g. 1.8 or 1.8%. Round debt to assets ratio and % change to 0 decimal places, e.g. 25%. If % change is a decrease show the numbers as negative, e.g. -25% or (25)%.) Situation Ratio 1. 20,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $52,000, and there were no dividends. Return on common stockholders' equity 2. Debt to assets 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 $856,000. ratio 3. Price-earnings The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Net income for 2023 was $52,000. (Use a simple average calculation for EPS). ratio 2023 2022 Return on common stockholders' equity % Debt to assets ratio % Price earnings ratio times 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 return on common stockholders' equity and price earnings ratio to 1 decimal place, e.g. 1.8 or 1.8%. Round debt to assets ratio and % change to 0 decimal places, e.g. 25%. If % change is a decrease show the numbers as negative, e.g. -25% or (25) %.) Situation Ratio 1. 20,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $52,000, and there were no dividends. Return on common stockholders' equity 2. 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 $856,000. Debt to assets ratio 3. The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Net income for 2023 was $52,000. (Use a simple average calculation for EPS). Price-earnings ratio 2023 2022 % % % % times times % Change % % %