Condensed statement of financial position and income statement data for Clarence Corporation appear below.

Clarence Corporation
Statements of Financial Position
December 31

Clarence Corporation
Income Statement
For the Years Ended December 31

Additional information: 
1. The market price of Clarence€™s ordinary shares was $4.00, $5.00, and $8.00 for 2012, 2013, and 2014, respectively.
2. All dividends were paid in cash.

Instructions 
(a) Compute the following ratios for 2013 and 2014.
(1) Profit margin.
(2) Asset turnover.
(3) Earnings per share. (Weighted-average ordinary shares in 2014 were 32,000 and in  2013 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 2013 to 2014 of Clarence Corporation.

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2014 2013 2012 Plant and equipment (net) $400,000 75,000 90,000 50,000 $370,000 70,000 95,000 45,000 20,000 $358,000 45,000 64,000 48,000 18,000 Investments Other current assets Receivables (net) Cash 25,000 $640,000 $600,000 $533,000 Share capital-ordinary, $10 par Retained earnings $345,000 $315,000 125,000 85,000 75,000 $300,000 113,000 50,000 70,000 145,000 80,000 Non-current liabilities Current liabilities 70,000 $640,000 $600,000 $533,000 2014 2013 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) Net income $740,000 40,000 $700,000 60,000 700,000 420,000 640,000 400,000 280,000 240,000 208,000 238,000 $ 42,000 $ 32,000