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The following financial information is for Pharoah Company. Pharoah Company Balance Sheets December 31 Assets 2020 2019 $ 69,000 39,000 90.000 Cash Debt investments (short-term) Accounts receivable Inventory Prepaid expenses Land Building and equipment (net) $ 72,000 54,000 107,000 236,000 30,000 162,000 27,000 133,000 188,000 133,000 260,000 Total assets $892,000 $708,000 Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2023 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity $170,000 65,000 42,000 250,000 209,000 156,000 $106,000 54,000 42,000 171,000 209,000 126.000 $892,000 $708,000 Pharoah Company Income Statements For the Years Ended December 31 2020 2019 Sales revenue $898,000 $789,000 Cost of goods sold 647,000 575,000 Gross profit 251,000 214,000 Operating expenses 194,000 160,000 Net income $ 57,000 $ 54,000 Additional information: 1. 2. 3. Inventory at the beginning of 2019 was $115,000. Accounts receivable (net) at the beginning of 2019 were $89,000. Total assets at the beginning of 2019 were $633,000. No common stock transactions occurred during 2019 or 2020. All sales were on account. 4. 5. (a1) Compute the liquidity and profitability ratios of Pharoah Company for 2019 and 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g. -1.83% or (1.83%).) (21) Compute the liquidity and profitability ratios of Pharoah Company for 2019 and 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g.-1.83% or (1.83%).) 2019 2020 % Change LIQUIDITY Current ratio 1.92 :1 1.80 :1 % Accounts receivables turnover times times % Inventory turnover times times % 2019 2020 % Change PROFITABILITY Profit margin % % Asset turnover times times % % Return on assets Earnings per share $ $ (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, 2020, and (2) as of December 31, 2021, after giving effect to the situation. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g.-1.83% or (1.83%).) Ratio 1. Situation 20,000 shares of common stock were sold at par on July 1, 2021. Net income for 2021 was $55,000. 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 $895,000. The market price of common stock was $9.00 and $12.00 on December 31, 2020 and 2021, respectively. Net income for 2021 was $55,000. Return on common stockholders' equity Debt to assets ratio 2. 3. Price-earnings ratio 2020 2021 % Change Return on % % % common stockholders' equity Debt to assets ratio Price earnings ratio % % % times times % Save for Later Last saved 6 minutes ago. Attempts: 0 of 1 used Submit

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