LANDWEHR CORPORATION Balance Sheets December 31 2018 2017 2016 Cash $25,000 $20,000 $18,000 Accounts receivable (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 Long-term debt 80,000 85,000 50,000 Common stock, $10 par 340,000 310,000 300,000 Retained earnings 145,000 125,000 113,000 $640,000 $600,000 $533,000

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 tax) 235,000 220,000 Net income $45,000 $30,000

Additional information: 1. The market 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. (Round ratios to one decimal point; round earnings per share to two decimal points) (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) Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2017 to 2018 of Landwehr Corporation.

NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "? Profit Margin: 2017 2018 Net Income Value Value Net Sales Value Value ? ? Asset Turnover: 2017 2018 2016 Total Assets Value 2017 Total Assets Value Value 2018 Total Assets Value Average Total Assets ? ? 2017 2018 Net Sales Value Value Average Total Assets Value Value ? ? Earnings per share: 2017 2018 Net Income Value Value Weighted-Average Common Shares Outstanding Value Value ? ? Price-earnings ratio: 2017 2018 Market Price per Share Value Value Earnings per Share Value Value ? ? Payout ratio: 2017 2018 Cash Dividends Value Value Net income Value Value ? ? Debt to assets ratio: 2017 2018 Debt Value Value Assets Value Value ? ?