Problem 13-04A Your answer is partially correct. Try again. The following financial information is for Sandhill Company. SANDHILL COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $ 69,000 $ 66,000 Debt investments (short-term) 50,000 42,000 Accounts receivable 106,000 92,000 Inventory 238,000 166,000 Prepaid expenses 25,000 24,000 Land 132,000 132,000 Building and equipment (net) 264,000 184,000 Total assets $884,000 $706,000 Liabilities and Stockholders' Equity Notes payable $169,000 $105,000 Accounts payable 68,000 51,000 Accrued liabilities 42,000 42,000 Bonds payable, due 2025 252,000 169,000 Common stock, $10 par 209,000 209,000 Retained earnings 144,000 130,000 Total liabilities and stockholders' equity $884,000 $706,000 SANDHILL COMPANY Income Statements For the Years Ended December 31 2022 2021 $782,000 576,000 Sales revenue Cost of goods sold Gross profit Operating expenses $888,000 640,000 248,000 195,000 206,000 158,000 Net income $ 53,000 $ 48,000 (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, after giving effect to the situation. (Round Debt to assets ratio to o decimal places, e.g. 15 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to o decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g.-1% or (1%).) Situation Ratio 1. 19,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $52,000. 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 $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 % Change X X Return on common stockholders' equity 15.0 || % 8.7 -41.8 X Debt to assets ratio .60 || % .42% -30.6% x x times Price earnings ratio 3. 7.0|| times 97.7% Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO