P18-3 Condensed balance sheet and income statement data for Landwehr Corporation appear below and on page 655. LANDWEHR CORPORATION Balance Sheets December 31 2018 2017 2016 Cash $25,000 50,000 90,000 75,000 400,000 20,000 $18,000 48,000 64,000 45,000 358,000 Accounts receivable (net) Other current assets 45,000 95,000 70,000 Investments Plant and equipment (net) 370,000 $600,000 $ 80,000 $640,000 $ 75,000 80,000 340,000 $533,000 Current liabilities $70,000 50,000 300,000 113,000 Long-term debt Common stock, $10 par Retained earnings 85,000 310,000 145,000 125,000 $640,000 $600,000 $533,000 LANDWEHR CORPORATION Income Statement For the Years Ended December 31 2018 2017 $740,000 $700,000 Sales revenue Less: Sales returns and allowances 40,000 50,000 Net sales Cost of goods sold 700,000 420,000 650,000 400,000 Gross profit Operating expenses (including income taxes) 280,000 250,000 220,000 235,000 $ 30,000 Net income 45,000 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 (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