Condensed balance sheet and income statement data for Pitka Corporation appear Perform ratio analysis. below:

Additional information:
1. The market price of Pitka's common stock was \(\$ 4.00, \$ 5.00\), and \(\$ 7.95\) for 1994 , 1995, and 1996, respectively.
2. All dividends were paid in cash.
3. On July \(1,1996,4,000\) shares of common stock 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 Pitka Corporation.
Compute ratios, commenting on overall liquidity and profitability. \((50\) 5)

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PITKA CORPORATION Balance Sheet December 31 1996 1995 Cash $ 25,000 $ 20,000 1994 $ 18,000 Receivables (net) 50,000 45,000 48,000 Other current assets 90,000 85,000 64,000 Investments Plant and equipment (net) 75,000 70,000 45,000 400,000 370,000 358,000 $640,000 $590,000 $533,000 Current liabilities $ 75,000 $ 80,000 Long-term debt 80,000 85,000 $ 70,000 50,000 Common stock, $10 par 340,000 300,000 300,000 Retained earnings 145,000 125,000 113,000 $640,000 $590,000 $533,000