The following financial information is for Priscoll Company.

Additional information:
1. Inventory at the beginning of 2021 was $115,000.
2. Accounts receivable (net) at the beginning of 2021 were $86,000.
3. Total assets at the beginning of 2021 were $660,000.
4. No common stock transactions occurred during 2021 or 2022.
5. All sales were on credit.

Instructions
a. Compute liquidity and profitability ratios, and indicate the percentage change (to the nearest whole percentage) in liquidity and profitability ratios of Priscoll Company from 2021 to 2022.

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, 2022, and (2) as of December 31, 2023, and percentage change in each ratio after giving effect to the situation

1. 18,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $54,000, 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 $900,000. 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 $54,000. 

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Priscoll Company Balance Sheets December 31 Assets Cash Debt investments (short-term) Accounts receivable (net) Inventory Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable (current) Accounts payable Accrued liabilities Bonds payable, due 2025 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity 2022 $ 70,000 55,000 104,000 230,000 25,000 130,000 260,000 $874,000 $170,000 65,000 40,000 250,000 200,000 149,000 $874,000 2021 $ 65,000 40,000 90,000 165,000 23,000 130,000 185,000 $698,000 $120,000 52,000 40,000 170,000 200,000 116,000 $698,000