26 of 28 < < Jergan Corporation Balance Sheets December 31 2022 2021 2020 Cash $30,000 $20,000 $ 18,000 Accounts receivable (net) 50,000 45,000 48,000 Other current assets 90,000 95,000 64,000 Investments 55,000 70,000 45,000 Plant and equipment (net) 500,000 370,000 358,000 $725,000 $600,000 $533,000 Current liabilities $85,000 $80,000 $70,000 Long-term debt 145,000 85,000 50,000 Common stock, $10 par 320,000 310,000 300,000 Retained earnings 175,000 125,000 113,000 $725,000 $600,000 $533,000 Jergan Corporation Income Statement For the Years Ended December 31 2022 2021 Sales revenue $740,000 $600,000 Less: Sales returns and allowances 40,000 30,000 Net sales 700,000 570,000 Cost of goods sold 425,000 350,000 Gross profit 275,000 220,000 Operating expenses (including income taxes) 180,000 150,000 Net income $95,000 $70,000 Additional information: 1. 2. The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively. You must compute dividends declared. All declared dividends were paid in cash in the year of declaration. Following are the ratios for 2021 and 2022. 2021 2022 (1) Profit margin. 12.3 % 13.6 % (2) Gross profit rate. 38.6 % 39.3 % (3) Asset turnover. 1.01 times 1.06 times (4) Earnings per share. $2.30 $3.02 (5) 53 Price-earnings ratio. 3.3 times 28 times (6) Payout ratio. 83 % 47 % (7) Debt to assets ratio. 28 % 32 % (b) Discuss briefly the improvement or lack thereof in the financial position and operating results from 2021 to 2022 of Jergan Corporation