Condensed balance sheet and income statement data for Landwehr Corporation appea

Question

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

LANDWEHR CORPORATION
Balance Sheets
December 31

2018

2017

2016

LANDWEHR CORPORATION
Income Statement
For the Years Ended December 31

2018

2017

Additional information:

(a)

Compute the following ratios for 2017 and 2018. (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%.)

2017

2018

LANDWEHR CORPORATION
Balance Sheets
December 31

2018

2017

2016

Cash $ 24,600 $ 17,000 $ 17,600 Accounts receivable (net) 50,600 44,300 48,300 Other current assets 90,300 94,500 64,500 Investments 75,000 70,000 44,700 Plant and equipment (net) 400,400 370,600 357,400 $640,900 $596,400 $532,500 Current liabilities $75,400 $79,800 $69,900 Long-term debt 79,900 84,300 50,900 Common stock, $10 par 371,000 310,000 300,000 Retained earnings 114,600 122,300 111,700 $640,900 $596,400 $532,500

Explanation / Answer

2017 2018 -1 Profit margin 5.6% 7.8% -2 Asset turnover      1.3 times 1.2 times -3 Earnings per share (Weighted-average common shares in 2018 were 31,200 and in 2017 were 29,900) 1.32 $      1.84 $ -4 Price-earnings ratio 3.78 times      4.90 times -5 Payout ratio 73.2% 113.4% -6 Debt to assets ratio 27.5% 24.2%

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