Condensed balance sheet and income statement data for Los Colinas Corporation appear below:

Additional information:
1. The market price of Los Colinas's common stock was \(\$ 5.00, \$ 4.50\), and \(\$ 2.30\) for 1994, 1995, and 1996, respectively 2. All dividends were paid in cash.
3. On July 1, 1995, 4,000 shares of common stock were issued and on July \(1,1996,6,000\) shares were issued.
\section*{Instructions}

(a) Compute the following ratios for 1995 and 1996:
(1) Profit margin.
(2) Asset turnover.
(3) Earnings per share.
(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 1995 to 1996 of Los Colinas Corporation.

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LOS COLINAS CORPORATION Balance Sheet December 31 1996 1995 1994 Cash Receivables (net) Other current assets Investments $ 40,000 $ 24,000 $ 20,000 70,000 45,000 48,000 80,000 75,000 62,000 90,000 70,000 50,000 Plant and equipment (net) 450,000 400,000 360,000 $730,000 $614,000 $540,000 Current liabilities $ 98,000 $ 75,000 Long-term debt 97,000 75,000 $ 70,000 65,000 Common stock, $10 par 400,000 340,000 300,000 Retained earnings 135,000 124,000 105,000 $730,000 $614,000 $540,000