ent FULL SCREEN PRINTER VER MESSAGE MY INSTRUCTOR Problem 14-3A | ] Your answer

ID: 2402236 • Letter: E

Question

ent FULL SCREEN PRINTER VER MESSAGE MY INSTRUCTOR Problem 14-3A | ] Your answer is incorrect. Try again. Condensed balance sheet and income statement data for Landwehr Corporation appear below. LANDWEHR CORPORATION Balance Sheets December 31 2018 $25,000 50,000 90,000 75,000 400,000 $640,000 $75,000 80,000 340,000 145,000 $640,000 2017 $ 20,000 45,000 95,000 70,000 370,000 $600,000 $80,000 85,000 310,000 125,000 $600,000 2016 $ 18,000 48,000 64,000 45,000 358,000 $533,000 $70,000 50,000 300,000 113,000 $533,000 Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) Current liabilitie Long-term debt Common stock, $10 par Retained earnings LANDWEHR CORPORATION Income Statement For the Years Ended December 31 2018 Sales revenue Less: Sales returns and allowances 2017 $740,000 $700,000 50,000 40,000

Explanation / Answer

2017

2018

profit margin

net income/sales

30000/650000

4.62%

45000/700000

6.43%

Asset turnover

sales/total average assets

650000/566500

1.15

700000/620000

1.13

average asset

(600000+5330000)/2

566500

(600000+640000)/2

620000

EPS

net income/no of shares

30000/31000

0.97

45000/32000

1.41

PE ratio

Market price/eps

5/.9677

5.17

8/1.40625

5.69

payout ratio

18000/30000

0.6

25000/45000

0.555556

Amount of dividend paid = net income-net income transfer to retained earnings

30000-(125000-113000)

18000

45000-(145000-125000)

25000

total of liabilities/total assets

165000/600000

0.28

155000/640000

0.24