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The following financial information is for Priscoll Company. Priscoll Company Balance Sheets December 31 Assets 2020...

The following financial information is for Priscoll Company.

Priscoll Company
Balance Sheets
December 31

Assets

2020

2019

Cash $ 106,400 $ 98,800
Debt investments (short-term) 83,600 60,800
Accounts receivable 158,080 136,800
Inventory 349,600 250,800
Prepaid expenses 38,000 34,960
Land 197,600 197,600
Building and equipment (net) 395,200 281,200
Total assets $1,328,480 $1,060,960

Liabilities and Stockholders’ Equity

Notes payable (short-term) $258,400 $182,400
Accounts payable 98,800 79,040
Accrued liabilities 60,800 60,800
Bonds payable, due 2023 380,000 258,400
Common stock, $10 par 304,000 304,000
Retained earnings 226,480 176,320
Total liabilities and stockholders’ equity $1,328,480 $1,060,960

Priscoll Company
Income Statement
For the Years Ended December 31

2020

2019

Sales revenue $1,340,640 $1,200,800
Cost of goods sold 972,800 874,000
Gross profit 367,840 326,800
Operating expenses 288,800 253,840
Net income $ 79,040 $ 72,960

Additional information:
1. Inventory at the beginning of 2019 was $174,800.
2. Accounts receivable (net) at the beginning of 2019 were $130,720.
3. Total assets at the beginning of 2019 were $1,003,200.
4. No common stock transactions occurred during 2019 or 2020.
5. All sales were on account.
Indicate, by using ratios, the change in liquidity and profitability of Priscoll Company from 2019 to 2020. (Round Current ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

2019

2020

LIQUIDITY

Current ratio :1 :1
Accounts receivable turnover times times
Inventory turnover times times

PROFITABILITY

Profit margin % %
Asset turnover times times
Return on assets % %
Earnings per share $ $

LINK TO TEXT

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, 2020, and (2) as of December 31, 2021, after giving effect to the situation. (Round debt to assets ratio to 0 decimal places, e.g. 15% and other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

Situation

Ratio

(1) 27,360 shares of common stock were sold at par on July 1, 2021. Net income for 2021 was $82,080. Return on common stockholders’ equity
(2) All of the notes payable were paid in 2021. All other liabilities remained at their December 31, 2020, levels. At December 31, 2021, total assets were $1,368,000. Debt to assets ratio
(3) The market price of common stock was $14 and $18 on December 31, 2020 and 2021, respectively. Net income for 2021 was $82,080. Price-earnings ratio

2020

2021

Return on common stockholders’ equity % %
Debt to assets ratio % %
Price-earnings ratio times times
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