The following information is available for Leon's Furniture Limited for the years ended December 31 (in thousands, except for share price):

_____________________________________________2012...............2011

Profit available to common shareholders...............$46,782............$56,666

Weighted average number of common shares............70,033..............69,969

Share price.....................................................$12.99..............$12.40

(a) Calculate the earnings per share and the price-earnings ratio for each year.

(b) Indicate whether profitability improved or deteriorated in 2012.