Condensed balance sheet and income statement data for Clarence Corporation appear below. Additional information:1. The market price
Question:
Condensed balance sheet and income statement data for Clarence Corporation appear below.
Additional information:1. The market price of Clarence?s common stock was $4.00, $5.00, and $8.00 for 2011, 2012, and 2013, respectively.
2. All dividends were paid in cash.
Instructions(a) Compute the following ratios for 2012 and 2013.(1) Profit margin.(2) Asset turnover.(3) Earnings per share. (Weighted-average common shares in 2013 were 32,000 and in 2012 were 31,000.)(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 2012 to 2013 of Clarence Corporation.
Step by Step Answer:
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso