Condensed balance sheet and income statement data for Jergan Corporation are presented here.

Additional information
1. The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2015, 2016, and 2017, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
Instructions
(a) Compute the following ratios for 2016 and 2017.
(1) Profit margin.
(2) Gross profit rate.
(3) Asset turnover.
(4) Earnings per share.
(5) Price-earnings ratio.
(6) Payout ratio.
(7) Debt to assets ratio.
(b) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2016 to 2017 of Jergan Corporation.

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JERGAN CORPORATION Balance Sheets December 31 Accounts receivable (net) Plant and equipment (net) Current liabilities term Common stock, $10 par JERGAN CORPORATION Income Statements For the Years Ended December 31 Less: Sales returns and allowances Cost of goods sold Operating expenses (including income taxes) 180,000 50,000