The condensed balance sheet and income statement data for Symbiosis Corporation are presented below.

SYMBIOSIS CORPORATION Balance Sheets December 31 2014 2013 2012 Cash $ 30,000 $ 24,000 $ 20,000 Accounts receivable (net) 110,000 48,000 48,000 Other current assets 80,000 78,000 62,000 Investments 90,000 70,000 50,000 Plant and equipment (net) 503,000 400,000 360,000

$813,000 $620,000 $540,000 Current liabilities $ 98,000 $ 75,000 $ 70,000 Long-term debt 130,000 75,000 65,000 Common stock, $10 par 400,000 340,000 300,000 Retained earnings 185,000 130,000 105,000

$813,000 $620,000 $540,000 SYMBIOSIS CORPORATION Income Statements For the Years Ended December 31 2014 2013 Sales revenue $800,000 $750,000 Less: Sales returns and allowances 40,000 50,000 Net sales 760,000 700,000 Cost of goods sold 420,000 406,000 Gross profit 340,000 294,000 Operating expenses (including income taxes) 230,000 209,000 Net income $110,000 $ 85,000 Additional information: 1. The market price of Symbiosis common stock was $5.00, $3.50, and $2.80 for 2012, 2013, and 2014, respectively. 2. You must compute dividends paid. All dividends were paid in cash.

Instructions

(a) Compute the following ratios for 2013 and 2014.

(1) Profit margin. (5) Price-earnings ratio.

(2) Gross profit rate. (6) Payout ratio.

(3) Asset turnover. (7) Debt to assets ratio.

(4) Earnings per share.

(b) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2013 to 2014 of Symbiosis Corporation.

AppendixLO1