The following financial information is for Priscoll Company

Additional information
1. Inventory at the beginning of 2016 was $115,000.
2. Accounts receivable (net) at the beginning of 2016 were $86,000.
3. Total assets at the beginning of 2016 were $660,000.
4. No common stock transactions occurred during 2016 or 2017.
5. All sales were on account.
Instructions
(a) Indicate, by using ratios, the change in liquidity and profitability of from 2016 to 2017.
(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, 2017, and (2) as of December 31, 2018, after giving effect to the situation. Net income for 2018 was $54,000. Total assets on December 31, 2018, were $900,000.
Situation
1. 18,000 shares of common stock were sold at par on July 1, 2018.
2. All of the notes payable were paid in 2018.
3. The market price of common stock was $9 and $12 on December 31, 2017 and 2018, respectively.
Ratio
Return on common stockholders' equity
Debt to assets ratio
Price-earnings ratio

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PRISCOLL COMPANY Balance Sheets December 31 Debt investments (short-term) Building and equipment (net) Liabilities and Stockholders' Equit $120,000 Bonds payable, due 2020 Common stock, $10 par Total liabilities and stockholdersequity $874,000 PRISCOLL COMPANY Income Statements For the Years Ended December 31 $790,000 Cost of goods sold 242,000