Problem 14-3A Condensed balance sheet and income statement data for Landwehr Cor
ID: 2400596 • Letter: P
Question
Problem 14-3A Condensed balance sheet and income statement data for Landwehr Corporation appear LANDWEHR CORPORATION Balance Sheets December 31 2018 $25,000 50,000 90,000 75,000 2017 $20,000 45,000 95,000 70,000 2016 Cash Accounts receivable (net) Other current assets Investments $18,000 48,000 64,000 45,000 Plant and equipment (net) 400,000 370,000 358,000 $533,000 $70,000 50,000 300,000 113,000 $533,000 $640,000 $75,000 80,000 340,000 145,000 $640,000 $600,000 $80,000 85,000 310,000 125,000 $600,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings LANDWEHR CORPORATION Income Statement For the Years Ended December 31 2018 2017 $740,000 $700,000 40,000 5010 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Grocs nrofit 50,000 650,000 400,000 250 n0o 700,000 420,000Explanation / Answer
2018 2017 1 Profit Margin 6.08 4.29 % 2 Asset turnover 0.68 0.71 times 3 Earning Per Share 1.41 0.97 $ 4 Price-earning ratio 5.67 5.15 times 5 Payout Ratio 0.56 0.60 % 6 Debt to Asstes 0.24 0.28 % 1 Profit margin 6.08 4.29 % Net Income / Sales 45000/740000 30000/700000 2 Asset turnover 0.68 0.71 times Cost of goods sold / Average Total Assets 420000/(640000+600000)/2 400000/(533000+600000)/2 3 Profit Margin 1.41 0.97 $ Net Income / Number of Common Stock 45000/32000 30000/31000 4 Price-earning ratio 5.67 5.15 times Market Price Per equity Share / Earning Per Share 8/1.41 5/.97 5 Payout Ratio 0.56 0.60 % Cash Dividend /Net income 25000/45000 18000/30000 6 Debt to Asstes 0.24 0.28 % Total Debt / Total Assets 155000/640000 165000/600000