Condensed balance sheet and income statement data for Clarence Corporation appear. CLARENCE CORPORATION Balance Sheets December 31 2013 2012 2011 Cash $ 25,000 $ 20,000 $ 18,000 Receivables (net) 50,000 45,000 48,000 Other current assets 90,000 95,000 64,000 Investments 75,000 70,000 45,000 Plant and equipment (net) 400,000 370,000 358,000 $640,000 $600,000 $533,000 Current liabilities $ 75,000 $ 80,000 $ 70,000 80,000 85,000 50,000 Long-term debt Common stock, $10 par 340,000 310,000 300,000 Retained earnings 145,000 125,000 113,000 $640,000 $600,000 $533,000 CLARENCE CORPORATION Income Statement For the Years Ended December 31 2013 2012 Sales revenue Less: Sales returns and allowances $740,000 $700,000 40,000 50,000 700,000 650,000 420,000 400,000 Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) 280,000 250,000 235,000 220,000 Net income $ 45,000 $ 30,000 Additional information: \Additional information: 1. The market price of Clarence's common stock was $4.00, $5.00, and $8.00 for 2011, 2012, and 2013, respectively. 2. All dividends were paid in cash. Instructions (a) Compute the following ratios for 2012 and 2013. 1. Profit margin. 2. Asset turnover. 3. Earnings per share. (Weighted-average common shares in 2013 were 32,000 and in 2012 were 31,000.) 4. Price-earnings. 5. Payout. 6. Debt to total assets. (b) Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2012 to 2013 of Clarence Corporation