The following financial information is for Sunland Company Sunland Company Balance Sheets December 31 Assets 2022 2021 Cash $ 113.400 $ 105.300 89.100 Debt investments (short-term) Accounts receivable (net) 64,800 168,480 145.800 Inventory 372,600 267.300 Prepaid expenses 40,500 37,260 Land 210,600 210.600 Building and equipment (net) 421.200 299.700 Total assets $ 1.415.880 51.130.760 Liabilities and Stockholders' Equity $275,400 $ 194,400 105,300 84,240 64,800 64,800 Notes payable (current) Accounts payable Accrued liabilities Bonds payable, due 2025 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity 405,000 275,400 324,000 324,000 241,380 187.920 $ 1,415,880 $ 1.130,760 Sunland Company Income Statement For the Years Ended December 31 2022 2021 Net sales $ 1.279,800 $ 1,428,840 1,036,800 Cost of goods sold 931,500 Gross profit 392,040 348,300 Sunland Company Income Statement For the Years Ended December 31 2022 2021 Net sales $1,428,840 $1,279,800 Cost of goods sold 1,036,800 931,500 Gross profit 392,040 348,300 Operating expenses 307,800 270,540 Net income $ 84,240 $ 77,760 Additional information: 1. 2. Inventory at the beginning of 2021 was $ 186,300. Accounts receivable (net) at the beginning of 2021 were $ 139,320. Total assets at the beginning of 2021 were $ 1,069.200. No common stock transactions occurred during 2021 or 2022. 3. 4. 5. All sales were on credit. Indicate, by using ratios, the change in liquidity and profitability of Sunland Company from 2021 to 2022. (Round Current ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, 6.3.6.8 or 6.8%.) 2021 2022 LIQUIDITY Current ratio 180 :1 176 :1 Accounts receivable turnover 8.98 times 9.09 times Inventory turnover 4,11 times 3:24 times PROFITABILITY 27 % 22 96 Profit margin 116 times 112 times Asset turnover 0.1 % % Return on assets $ 20 Earnings per share Accounts receivable turnover 8.98 times 9.09 times Inventory turnover 4.11 times 3.24 times PROFITABILITY Profit margin 27 % 27 % Asset turnover 1.16 times 11.12 times Return on assets 0.1 de 0.1 % Earnings per share 24 26 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 debt to assets ratio to o decimal places, e.g. 15% and other answers to 1 decimal place, e.g. 6.8 or 6.8%.) Ratio (1) (2) Situation 29,160 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $ 87,480, and there were no dividends. All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022, levels. At December 31, 2023, total assets were $ 1.458,000, The market price of common stock was $ 15 and $ 19 on December 31, 2022 and 2023, respectively. Net income for 2023 was $ 87,480. (Use a simple average calculation for EPS.) Return on common stockholders' equity Debt to assets ratio (3) Price-earnings ratio 2022 2023 Return on common stockholders'equity % % Debt to assets ratio % %6 Price earnings ratio times times