Condensed balance sheet and income statement data for Lauer Corporation appear below.

Additional information:
1. The market price of Lauer's common shares was $4.00, $5.00, and $8.00 for 2015, 2016, and 2017, respectively.
2. All dividends were paid in cash.
3. Weighted-average common shares were 32,000 in 2017 and 31,000 in 2016.
Instructions
(a) Calculate the following ratios for 2016 and 2017.
1. Gross profit margin
2. Asset turnover
3. Earnings per share
4. Price-earnings ratio
5. Payout ratio
6. Debt to total assets
7. Profit margin
(b) Based on the ratios calculated, discuss briefly the improvement or lack there of in Lauer Corporation's financial position and operating results from 2016 to 2017.
TAKING IT FURTHER
Mr. Lauer is puzzled. He believes the profit margin of Lauer Corporation is an indication the company is doing well. Brittany Qi, his accountant, says that more information is needed to determine the firm's financial well-being. Who is correct? Why?

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LAUER CORPORATION Balance Sheet December 31 2016 2017 25,000 50,000 90,000 475,000 2015 Cash Accounts receivable Other current assets Property, plant, and equipment (net) 20,000 45,000 95,000 440,000 $600,000 $ 18,000 48,000 64,000 403,000 $533,000 $640,000 600 Current liabilities Mortgage payable 65,000 80,000 350,000 145,000 80,000 85,000 310,000 125,000 $600,000 70,000 50,000 300,000 Common shares Retained earnings $640,000.123 000113,000 $533,000 LAUER CORPORATION Income Statement For the Year Ended December 31 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) Profit 2017 $750,000 40,000 710,000 420,000 290,000 235,000 55,000 2016 $710,000 50,000 660,000 400,000 260,000 220,000 $ 40,000