1. Average P14.3A (LO 3), AN Writing Condensed balance sheet and income statement data for Jergan Corpora- tion are presented here. Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) Jergan Corporation Balance Sheets December 31 2020 $ 30,000 50,000 90,000 55,000 500,000 $725,000 2019 $ 20,000 45,000 95,000 70,000 370,000 $600,000 2018 $ 18,000 48,000 64,000 45,000 358,000 $533,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings $ 85,000 145,000 320,000 175,000 $725,000 $ 80,000 85,000 310,000 125,000 $600,000 $ 70,000 50,000 300,000 113,000 $533,000 2019 $600,000 30,000 570,000 350,000 220,000 150,000 $ 70,000 Jergan Corporation Income Statements For the Years Ended December 31 2020 Sales revenue $740,000 Less: Sales returns and allowances 40,000 Net sales 700,000 Cost of goods sold 425,000 Gross profit 275,000 Operating expenses (including income taxes) 180,000 Net income $ 95,000 Additional information: 1. The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 2. You must compute dividends paid. All dividends were paid in cash. Instructions a. Compute the following ratios for 2019 and 2020. 1. Profit margin. 5. Price-earnings ratio. 2. Gross profit rate. 6. Payout ratio. 3. Asset turnover. 7. Debt to assets ratio. 4. Earnings per share. b. Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2019 to 2020 of Jergan Corporation