LANDWEHR CORPORATION

Balance Sheets

December 31

2018

2017

2016

Cash

$19,000

$26,000

$18,000

Accounts receivable (net)

50,000

43,000

46,000

Other current assets

85,000

92,000

63,000

Investments

73,000

68,000

45,000

Plant and equipment (net)

400,000

370,000

358,000

$627,000

$599,000

$530,000

Current liabilities

$73,000

$79,000

$70,000

Long-term debt

75,000

85,000

50,000

Common stock, $10 par

340,000

310,000

300,000

Retained earnings

139,000

125,000

110,000

$627,000

$599,000

$530,000

LANDWEHR CORPORATION

Income Statement

For the Years Ended December 31

2018

2017

Sales revenue

$740,000

$700,000

Less: Sales returns and allowances

40,000

50,000

Net sales

700,000

650,000

Cost of goods sold

420,000

400,000

Gross profit

280,000

250,000

Operating expenses (including income taxes)

235,000

220,000

Net income

$45,000

$30,000

Additional information:

1.

The market price of Landwehr's common stock was $4, $5, and $8 for 2016, 2017, and 2018, respectively.2.

All dividends were paid in cash.

(a)

Compute the following ratios for 2017 and 2018. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

2017

2018

(1)

Profit margin

%

%(2)

Asset turnover

times

times(3)

Earnings per share. (Weighted-average common shares in 2018 were32,000

and in 2017 were31,000.)

$

$

(4)

Price-earnings ratio

times

times(5)

Payout ratio

%

%(6)

Debt to assets ratio

%

%