The following financial information is for Sunland Company.

(a1) Compute the liquidity and profitability ratios of Sunland Company for 2019 and 2020. (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%).)

(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, 2020, and (2) as of December 31, 2021, after giving effect to the situation. (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%).)

Sunland Company Balance Sheets December 31 Assets 2020 Cash $ 69,000 Debt investments (short-term) 53,000 Accounts receivable 103,000 Inventory 239,000 Prepaid expenses 25,000 Land 132,000 Building and equipment (net) 263,000 Total assets $884,000 Liabilities and Stockholders' Equity Notes payable $170,000 Accounts payable 66,000 Accrued liabilities 42,000 Bonds payable, due 2023 251,000 Common stock, $10 par 205,000 Retained earnings 150,000 Total liabilities and stockholders' equity $884,000 2019 $ 69,000 41,000 92,000 164,000 29,000 132,000 188,000 $715,000 $101,000 54,000 42,000 170,000 205,000 143,000 $715,000 Sunland Company Income Statements For the Years Ended December 31 2020 2019 Sales revenue $890,000 $791,000 Cost of goods sold 643,000 576.000 Gross profit 247,000 215,000 Operating expenses 190,000 160,000 Net income $ 57,000 $ 55,000 Additional information: 1. 2. 3. Inventory at the beginning of 2019 was $115,000. Accounts receivable (net) at the beginning of 2019 were $90,000. Total assets at the beginning of 2019 were $631,000. No common stock transactions occurred during 2019 or 2020. All sales were on account. 4. 5. 2019 2020 % Change LIQUIDITY Current ratio :1 1 % times times % Accounts receivables turnover Inventory turnover times times % 2019 2020 % Change PROFITABILITY Profit margin % % Asset turnover times times % % Return on assets Earnings per share $ $ Ratio 1. Situation 19,000 shares of common stock were sold at par on July 1, 2021. Net income for 2021 was $55,000. All of the notes payable were paid in 2021. All other liabilities remained at their December 31, 2020, levels. At December 31, 2021, total assets were $867,000. The market price of common stock was $9.00 and $13.00 on December 31, 2020 and 2021, respectively. Net income for 2021 was $55,000. Return on common stockholders' equity Debt to assets ratio 2. 3. Price-earnings ratio 2020 2021 % Change Return on % % % common stockholders equity Debt to assets ratio Price earnings ratio % % % times times %