Problem 14-3A Condensed balance sheet and income statement data for Landwehr Corporation appear below.

Problem 14-3A

Condensed balance sheet and income statement data for Landwehr Corporation appear below.

LANDWEHR CORPORATION

Balance Sheets

December 31

2016

2015

2014

Cash$ 24,300$ 17,700$ 17,600Accounts receivable (net)50,40044,40048,800Other current assets90,20094,80063,000Investments74,10069,00044,400Plant and equipment (net)399,600369,500358,400$638,600$595,400$532,200Current liabilities$74,900$80,400$69,300Long-term debt79,90084,30050,000Common stock, $10 par353,600310,900300,800Retained earnings130,200119,800112,100$638,600$595,400$532,200

LANDWEHR CORPORATION

Income Statement

For the Years Ended December 31

2016

2015

Sales revenue$742,900$705,900Less: Sales returns and allowances40,90049,900Net sales702,000656,000Cost of goods sold422,700399,200Gross profit279,300256,800Operating expenses (including income taxes)215,200220,300Net income$ 64,100$ 36,500

Additional information:

1.The market price of Landwehr's common stock was $3, $5, and $8 for 2014, 2015, and 2016, respectively.2.All dividends were paid in cash.

(a)

Compute the following ratios for 2015 and 2016. (Round Earnings per share to 2 decimal places, e.g.1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

2015

2016

(1)Profit margin

%

%(2)Asset turnover

times

times(3)Earnings per share. (Weighted-average common shares in 2016

were 33,400 and in 2015 were 32,400.)$

$

(4)Price-earnings ratio

times

times(5)Payout ratio

%

%(6)Debt to assets ratio

%

%