Based on the ratios calculated, discuss the improvement or lack thereof in the

financial position and operating results from 2016 to 2017 of Jergan Corporation.

Profit margin
			2017	2016
Net income			$ 95,000.00	$ 70,000.00
Net sales			$ 700,000.00	$ 570,000.00
Profit margin			14%	12%
Gross profit rate
			2017	2016
Gross profit			$ 275,000.00	$ 220,000.00
Net sales			$ 700,000.00	$ 570,000.00
Gross profit rate			39.29%	38.60%
Asset turnover
			2017	2016
Total assets, 2017			$ 725,000.00
Total assets, 2016			$ 600,000.00	$ 600,000.00
Total assets, 2015				$ 533,000.00
Average total assets			$ 662,500.00	$ 566,500.00
			2017	2016
Net sales			$ 700,000.00	$ 570,000.00
Average total assets			$ 662,500.00	$ 566,500.00
Asset turnover			1.06	1.01
Earnings per share
			2017	2016
Common shares outstanding, 2017			$ 320,000.00
Common shares outstanding, 2016			$ 310,000.00	$ 310,000.00
Common shares outstanding, 2015				$ 300,000.00
Average common shares outstanding			$ 315,000.00	$ 305,000.00
			2017	2016
Net income - Pfd. Dividends			$ 95,000.00	$ 70,000.00
Average common shares outstanding			$ 315,000.00	$ 305,000.00
Earnings per share			0.30	0.23
Price-earnings ratio
			2017	2016
Stock price per share			$ 8.50	$ 7.50
Earnings per share			$ 0.30	$ 0.23
Price-earnings ratio			28.33	32.6
Payout ratio
			2017	2016
Prior year's retained earnings			$ 125,000.00	$ 113,000.00
Plus: current year net income			$ 95,000.00	$ 70,000.00
Less: current year's retained earnings			$ 175,000.00	$ 125,000.00
Cash dividends declared			$ 45,000.00	$ 58,000.00
			2017	2016
Cash dividends declared (common)			$ 45,000.00	$ 58,000.00
Net income			$ 95,000.00	$ 70,000.00
Payout ratio			47.37%	82.86%
Debt to assets ratio
			2017	2016
Current Liabilities			$ 85,000.00	$ 80,000.00
Long-term debt			$ 145,000.00	$ 85,000.00
Total liabilities			$ 230,000.00	$ 165,000.00
Total assets			$ 725,000.00	$ 600,000.00
Debt to assets ratio			0.32%	0.28%