The condensed balance sheet and income statement data for Cardinal Corporation are presented below.

Additional information:
1. The market price of Cardinal common stock was $5.00, $3.50, and $2.30 for 2008, 2009, and 2010, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
Instructions
(a) Compute the following ratios for 2009 and 2010.
(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 2009 to 2010 of CardinalCorporation.

CARDINAL CORPORATION Balance Sheets December 31 2010 2009 2008 Cash Receivables (net) Other current assets Investments Plant and equipment (net) 63,000 400,000 110,000 80,000 90,000 30,000 24,000 $20,000 48,000 78,000 70,000 48,000 62,000 50,000 360,000 $540,000 $913,000 $620,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings 98,000 75,000 70,000 75,000 340,000 130,000 $913,000 $620,000 $540,000 230,000 400,000 185,000 65,000 300,000 105,000 CARDINAL CORPORATION Income Statements For the Years Ended December 31 2010 50 2009 Sales Less: Sales returns and allowances $800,000 $750,000 50,000 40,000 760,000 700,000 420,000 400,000 340,000 300,000 Operating expenses (including income taxes) 220,000 210,000 $120,000 $90,000 Net sales Cost of goods sold Gross profit Net income