P18-4 question continued on other picture

Writing Condensed statement of financial position and income statement data for Clarence PI /LO 2) Writin Limited appear below. Perfor financi results Plant and equipment (net) Investments Other current assets Accounts receivable (net) Cash Clarence Limited Statements of Financial Position December 31 2020 2019 400,000 370,000 75,000 70,000 90.000 95.000 50.000 45,000 25,000 20.000 640.000 600.000 2018 358.000 45,000 64,000 48.000 18.000 f533,000 Share capital-ordinary, 10 par Retained earnings Non-current liabilities Current liabilities 345,000 145,000 80,000 70,000 640,000 315.000 123,000 87.000 75,000 600.000 300,000 113,000 50.000 70,000 533.000 Clarence Limited Income Statement For the Years Ended December 31 2020 Sales revenue 740,000 40,000 Less: Sales returns and allowances Net sales 700.000 420,000 Cost of goods sold 280,000 Gross profit 236,000 Operating expenses (including income taxes) E 44.000 Net income 2019 700.000 60.000 640,000 400.000 240,000 210,000 E 30,000 cial Analysis: The Big Picture Additional information: 1. The market price of Clarence's ordinary shares was 4.00, 5.00, and 7.00 for 2018. 201 2020, respectively. 2. All dividends were paid in cash. Instructions a. Compute the following ratios for 2019 and 2020. 1. Profit margin. 2. Asset turnover. 3. Earnings per share. (Weighted average ordinary shares in 2020 were 32,000 and in 2019 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 posto and operating results from 2019 to 2020 of Clarence Limited