Condensed balance sheet and income statement data for Landwehr Corporation appear below.

Additional information:
1. The market price of Landwehr’s common stock was $4.00, $5.00, and $8.00 for 2013, 2014, and 2015, respectively.
2. All dividends were paid in cash.

Instructions
(a) Compute the following ratios for 2014 and 2015.
(1) Profit margin.
(2) Asset turnover.
(3) Earnings per share. (Weighted-average common shares in 2015 were 32,000 and in 2014 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 position and operating results from 2014 to 2015 of LandwehrCorporation.

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LANDWEHR CORPORATION Balance Sheets December 31 2015 2014 2013 S 18,000 48,000 64,000 45,000 358,000 S533,000 S 70,000 50,000 300,000 113,000 S533,000 Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) 50,000 90,000 75,000 400,000 $640,000 25,000 20,000 45,000 95,000 70,000 370,000 $600,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings $ 75,000 80,000 85,000 310,000 125,000 80,000 340,000 145,000 $640,000 $600,000 LANDWEHR CORPORATION Income Statement For the Years Ended December 31 2015 2014 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) Net income $740,000$700,000 50,000 650,000 400,000 250,000 220,000 45,000 30,000 40,000 700,000 420,000 280,000 235,000