Condensed statement of financial position and income statement data for Kersenbrock Corporation appear below and on the shown below.

Additional information:
1. The market price of Kersenbrock’s ordinary shares was $4,00, $5,00, and $8,00 for 2010, 2011, and 2012, respectively.
2. All dividends were paid in cash.

Instructions
(a) Compute the following ratios for 2011 and 2012.
(1) Profit margin.
(2) Asset turnover.
(3) Earnings per share, (Weighted-average ordinary shares in 2012 were 32,000 and in 2011 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 2011 to 2012 of KersenbrockCorporation.

KERSENBROCK CORPORATION Statements of Financial Position December 31 2012 2011 2010 Plant and equipment (net) Investments Other current assets Receivables (net) Cash $400.000 $370.000 $358.000 45,000 64.000 48,000 18,000 75.000 90.000 50,000 25,000 70,000 95,000 45.000 20.000 $640,000 $600,0 S533,000o Share capital ordinary. S10 par $340.000 $310.000 $300,000 113,000 50,000 70,000 Retained earnings Non-current liabilities Current liabilities 145.000 80.000 75,000 125,000 85,000 80,000 640,000 $600,000 $533.000 KERSENBROCK CORPORATION Income Statements For the Years Ended December 31 2011 Sales 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