Current Attempt in Progress The following financial information is for Sunland Company. SUNLAND COMPANY Balance Sheets December 31 Assets 2022 Cash $ 70.000 Debt investments (short-term) 51,000 Accounts receivable 109.000 Inventory 237.000 Prepaid expenses 27,000 Land 134,000 Building and equipment (net) 263.000 Total assets $891.000 Liabilities and Stockholders' Equity Notes payable $169.000 Accounts payable 69.000 Accrued liabilities 39.000 Bonds payable, due 2025 250.000 Common stock. $10 par Retained earnings 159.000 Total liabilities and stockholders equity $891.000 2021 $ 65.000 40.000 90.000 168.000 27.000 134,000 186.000 $710.000 $104.000 53.000 39.000 172.000 205.000 137.000 $710.000 SUNLAND COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $892.000 $784.000 Cost of goods sold 644.000 576,000 Gross profit 248.000 208.000 Operating expenses 198.000 161.000 Net income $50.000 $ 47,000 Additional information 1 2 Inventory at the beginning of 2021 was $115.000 Accounts receivable (net) at the beginning of 2021 were $90,000 Total assets at the beginning of 2021 were $640.000 No common stock transactions occurred during 2021 2022 All sales were on account 4. 5. (a1) Compute the liquidity and profitability ratios of Sunland Company for 2021 and 2022 Round Curent rutio, Asset turnoverend Eamings per shendo 2 dedmal plasses 15.50 and round of the answers to 1 decimal place, 155. Round change to decimal places, for eg 1% and change is a decrease show the numbers as negative -1 or (18 2021 2022 Change LIQUIDITY 1 Current ratio Accounts recelvables turnover Inventory turnover times times 33 times times 2021 2022 Change PROFITABILITY Profit margin % 96 Asset turnover times times Return on assets 36 Earnings per share (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 of December 31, 2023. efter giving effect to the situation, found Debt to assets ratio to o decimal places es. 15 and round off other answers to 1 decimal place, ag. 155. Round 9 charge to Odedmal places, foreg 1% and if i change isa decrease show the numbers as negatives. Ir (19 Situation 18.000 shares of common stock were sold at par on July 1, 2023. Net Income for 2023 was $52.000 All of the notes payable were paid in 2023. All other abities remained at their December 31 2022 leveis. Total assets on December $1.2023. were $903.000 The market price of common stock was $9 and $12 on December 31, 2022 and 2023. respectively. Ratio Return on common stockholders' equity Debt to assets ratio 2 Price earnings ratio 2022 2023 96 Change 96 54 3 Return on common stockholders equity Debt to assets ratio Price earnings ratio 96 times times Textbook and Media