Condensed balance sheet and income statement data for Glassgow Corporation are presented here.

Additional information:1. The market price of Glassgow's common stock was $7.00, $7.50, and $8.50 for 2010, 2011, and 2012, respectively.2. You must compute dividends paid. All dividends were paid in cash.Instructions(a) Compute the following ratios for 2011 and 2012.(1) Profit margin.(2) Gross profit rate.(3) Asset turnover.(4) Earnings per share.(5) Price-earnings.(6) Payout.(7) Debt to total assets.(b) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2011 to 2012 of Glassgow Corporation.

GLASSGOW CORPORATION Balance Sheets December 31 2010 2012 2011 $ 30,000 $ 20,000 $ 18,000 48,000 Cash Receivables (net) Other current assets 50,000 45,000 90,000 95,000 70,000 64,000 55,000 Investments 45,000 358,000 Plant and equipment (net) 500,000 370,000 $725,000 $533,000 $600,000 $ 70,000 50,000 300,000 113,000 $ 85,000 145,000 320,000 175,000 $ 80,000 85,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings 310,000 125,000 $725,000 $600,000 $533,000 GLASSGOW CORPORATION Income Statements For the Years Ended December 31 2012 2011 Sales $740,000 $600,000 Less: Sales returns and allowances 40,000 30,000 Net sales 700,000 425,000 570,000 Cost of goods sold 350,000 275,000 180,000 Gross profit Operating expenses (including income taxes) 220,000 150,000 $ 95,000 $ 70,000 Net income