Your answer is partially correct. The following financial information is for Sheridan Company. SHERIDAN COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $72,000 $64,000 Debt investments (short-term) 54,000 42,000 Accounts receivable 104,000 91,000 Inventory 230,000 165,000 Prepaid expenses 22,000 25,000 Land 134,000 134,000 Building and equipment (net) 261,000 189,000 Total assets $877,000 $710,000 Liabilities and Stockholders' Equity Notes payable $171,000 $108,000 Accounts payable 65,000 50,000 Accrued liabilities 41,000 41,000 Bonds payable, due 2025 249,000 172,000 Common stock, $10 par 207,000 207,000 Retained earnings 144,000 132,000 Total liabilities and stockholders' equity $877,000 $710,000 SHERIDAN COMPANY SHERIDAN COMPANY Income Statements For the Years Ended December 31 2021 2022 Sales revenue $896,000 $796,000 Cost of goods sold 648,000 574,000 Gross profit 248,000 222,000 Operating expenses 189,000 165,000 $ 59,000 $57,000 Net income Additional information: Inventory at the beginning of 2021 was $115,000. 1. 2. Accounts receivable (net) at the beginning of 2021 were $88,000. 3.. Total assets at the beginning of 2021 were $639,000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account. (a1) Compute the liquidity and profitability ratios of Sheridan Company for 20 decimal place, e.g. 15.5. Round % change to 0 decimal places, for (a1) Compute the liquidity and profitability ratios of Sheridan Company for 2021 and 2022. (Round Curent ratio, Asset turnover and Earnings per share to 2 deci 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 (: 2021 2022 % Change LIQUIDITY Current ratio 1.94 :1 1.74 :1 -10 Accounts receivables turnover .96 times times 15 Inventory turnover 3.38 times 3.81 times 13 % 2021 2022 % Change PROFITABILITY Profit margin 26 24 -8 Asset turnover .30 times 33 times 10 Return on assets Earnings per share $ 28 2$ 28 (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 o (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 place numbers as negative, eg. -1% or (1%).) Situation 1. 19,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $53,000. 2. All of the notes payable were paid in 2023. All other liabillities remained at their December 31, 2022 levels. Total assets on December 31, 2023, were $868,00. mings per share $ 28 28 wen 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 situat ound Debt to assets ratio to 0 decimal places, e.g. 15 and round all other answers to 1 decimal place, es. 15.5. Round % change to 0 decimal places, for es 1% and if X change is e decrease she umbers as negative, es :1% or (1%).) Situation Ratie 1. 19,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $53.000. Return on common stockholders'equity 2. All of the notes payable were paid in 2023. All other lablities remained at their December 31, 2022 levels. Total assets on December 31, 2023, were $868,000. Debt to assets ratio 3. The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Price earnings ratio 2022 2023 XChange Return on common stockholders' equity 30 27 -10 Debt to assets ratio 100 81 19 Price earnings ratio 32.1 times 42.9 times 34 eTextbook and Media Attempts: 1 of 2 used Save for Later Submit Anwer Send to Gradebook ( Prev