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, after giving effect to the situation. (Round all answers to 1 decimal places, e.g 1.8 or 1.8%. If % change is a decrease show the numbers as negative, e.g. - 1.83% or (1.83 %).) Situation Ratio 1.18, 000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $54,000. Return on common stockholders' equity2. 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 ratio3. The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Net income for 2023 was $54,000. Price - earnings ratio 20232022% ChangeReturn on common stockholders' equityenter Return on common stockholders' equity in percentages rounded to 1 decimal place % enter Return on common stockholders' equity in percentages rounded to 1 decimal place % enter Return on common stockholders' equity in percentages rounded to 1 decimal place % enter Return on common stockholders' equity in percentages rounded to 1 decimal place % Debt to assets ratioenter Debt to assets ratio in percentages rounded to 1 decimal place % enter Debt to assets ratio in percentages rounded to 1 decimal place % enter Debt to assets ratio in percentages rounded to 1 decimal place % Price earnings ratioenter a number of Price earnings ratio in times rounded to 1 decimal place timesenter a number of Price earnings ratio in times rounded to 1 decimal place timesenter Price earnings ratio in percentages rounded to 1 decimal place %
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, after giving effect to the situation. (Round all answers to 1 decimal places, e.g 1.8 or 1.8%. If % change is a decrease show the numbers as negative, e.g. - 1.83% or (1.83 %).) Situation Ratio 1.18, 000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $54,000. Return on common stockholders' equity2. 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 ratio3. The market price of common stock was $9 and $12 on December 31, 2022 and 2023, respectively. Net income for 2023 was $54,000. Price - earnings ratio 20232022% ChangeReturn on common stockholders' equityenter Return on common stockholders' equity in percentages rounded to 1 decimal place % enter Return on common stockholders' equity in percentages rounded to 1 decimal place % enter Return on common stockholders' equity in percentages rounded to 1 decimal place % enter Return on common stockholders' equity in percentages rounded to 1 decimal place % Debt to assets ratioenter Debt to assets ratio in percentages rounded to 1 decimal place % enter Debt to assets ratio in percentages rounded to 1 decimal place % enter Debt to assets ratio in percentages rounded to 1 decimal place % Price earnings ratioenter a number of Price earnings ratio in times rounded to 1 decimal place timesenter a number of Price earnings ratio in times rounded to 1 decimal place timesenter Price earnings ratio in percentages rounded to 1 decimal place %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image 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, 2022, and (2) as of December
31, 2023, after giving effect to the situation. (Round all answers to 1 decimal places, e.g
1.8 or 1.8%. If % change is a decrease show the numbers as negative, e.g. - 1.83% or
(1.83 %).) Situation Ratio 1.18, 000 shares of common stock were sold at par on July
1, 2023. Net income for 2023 was $54,000. Return on common stockholders' equity2. 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 ratio3.
The market price of common stock was $9 and $12 on December 31, 2022 and 2023,
respectively. Net income for 2023 was $54,000. Price - earnings ratio 20232022%
ChangeReturn on common stockholders' equityenter Return on common stockholders'
equity in percentages rounded to 1 decimal place % enter Return on common stockholders'
Transcribed Image Text:equity in percentages rounded to 1 decimal place % enter Return on common stockholders'
equity in percentages rounded to 1 decimal place % enter Return on common stockholders'
equity in percentages rounded to 1 decimal place % Debt to assets ratioenter Debt to assets
ratio in percentages rounded to 1 decimal place % enter Debt to assets ratio in percentages
rounded to 1 decimal place % enter Debt to assets ratio in percentages rounded to 1
decimal place % Price earnings ratioenter a number of Price earnings ratio in times rounded
to 1 decimal place timesenter a number of Price earnings ratio in times rounded to 1 decimal
place timesenter Price earnings ratio in percentages rounded to 1 decimal place %
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