3 JERGAN CORPORATION Balance Sheet December 31 8 Cash 2017 $30,000 2016 2015 $20,000 $18,000 9 Accounts receivable (net) 50,000 45,000 48,000 10 Other current assets 90,000 95,000 64,000 11 Investments 55,000 70,000 45,000 12 Plant and equipment (net). 500,000 370,000 358,000 13 $725,000 $600,000 $533,000 14 15 Current liabilities. $85,000 $80,000 $70,000 16 Long-term debt 145,000 85,000 50,000 17 Common stock, $10 par 320,000 310,000 300,000 18. Retained Earnings 175,000 125,000 113,000 19 $725,000 $600,000 $533,000 20 21 22 JERGAN CORPORATION 231 Income Statement 24 For the Year Ended December 31 25 26 Sales revenue 2017 $740,000 2016 $600,000 27 Less: Sales return and allowances 40,000 30,000 28 Net sales 700,000 570,000 29 Cost of goods sold 425,000 350,000 30 Gross profit 275,000 220,000 31 Operating expenses (including income taxes) 180,000 150,000 32 Net income 95,000 70,000 33 34 Additional information: 35 1. 36 The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2012, 2016, and 2017, respectively. 37 2. You must compute dividends paid. All dividends were paid in cash. 38