an (L LANDWEHR CORPORATION Balance Sheets December 31 2018 2017 $ 25,000 20,000 18,000 2016 Cash Accounts receivable (net) Other current assets Investments 50,000 90,000 45,000 95,000 70,000 370,000 $600,000 48,000 64,000 45,000 358,000 $533,000 Plant and euipment (e10000 400,000 $640,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings 75,000 $80,000 70,000 80,000 340,000 145,000 50,000 300,000 113,000 85,000 310,000 125,000 $640,000 $600,000 $533,000 14 Financial Statement Analysis LANDWEHR CORPORATION Income Statement For the Years Ended December 31 2017 2018 $700,000 $740,000 40,000 700,000 420,000 280,000 235,000 S 45,000 Sales revenue Less: Sales returns and allowances Net sales 50,000 650,000 400,000 250,000 220,000 $ 30,000 Cost of goods sold Gross profit Operating expenses (including income taxes) Net income Additional information: 1. The mar ket price of Landwehr's common stock was $4.00, $5.00, and $8.00 for 2016 , 2017, and 2018, respectively 2. All dividends were paid in cash. Instructions (a) Compute the following ratios for 2017 and 2018. (1) Profit margin. (2) Asset turnover (3) Earnings per share. (Weighted-average common shares in 2018 were 32,000 and in 2017 were 31,000.) (4) Price-earnings ratio. (5) Payout ratio. (6) Debt to assets ratio. (b) thereof in financial position and operating results from 2017 to 2018 of Landwehr Corporation. Based on the ratios calculated, discuss briefly the improvement or lack