Condensed statement of financial position and income statement data for

Condensed statement of financial position and income statement data for Clarence Limited appear below.Clarence Limited Statements of Financial Position December 31 2020 2019 2018 Plant and equipment (net) £370,000 £400,0

Clarence Limited Income Statement For the Years Ended December 31 2020 2019 Sales revenue £740,000 £700,000 Less: Sale

Additional information:
1. The market price of Clarence’s ordinary shares was £4.00, £5.00, and £7.00 for 2018, 2019, and 2020, respectively.
2. All dividends were paid in cash.


Instructions
a. Compute the following ratios for 2019 and 2020.
1. Profit margin.
2. Asset turnover.
3. Earnings per share. (Weighted-average ordinary shares in 2020 were 32,000 and in 2019 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 2019 to 2020 of Clarence Limited.

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