Calculate the current ratio collection period for accounts receivable, inventory turnover, gross margin percentage, and return on equity for 2014 and 2015 for the Jordan Corporation. Do not average. Compute 2014 and 2015 separately.

Calculate the current ratio, collection period for accounts receivable, inventory turnover, gross margin percentage, and return on equity for the Industry. Do not average. Compute 2014 and 2015 separately.

Compare the performance of the Jordan Corporation between 2014 and 2015 and comment on the trend of each ratio.

Compare the performance of the Jordan Corporation in 2015 to the industry averages and comment on each.

2015 2014 $ 25,000 $ 100,000 125,000 250,000 20,000 80,000 100,000 200,000 300,000 (100,000) 50,000 250,000 500,000 $ 225,000 (75,000) 50,000 200,000 400,000 $ Assets Current Assets: Cash Accounts receivable Inventories Total Current Assets Fixed Assets; Plant and equipment Less accumulated depreciation Land Total Fixed Assets Total Assets Liabilities and Equity Current Liabilities: Accounts payable Notes payable-due within one year Accrued liabilities Total Current Liabilities Long Term Liabilities Total Liabilities Stockholders' Equity: Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equty $ 78,000 $ 34,000 30,000 142,000 140,000 282,000 65,000 10,000 25,000 100,000 100,000 200,000 50,000 168,000 218,000 500,000 $ 50,000 150,000 200,000 400,000 $ Jordan Corporation Income Statement Years Ended December 31, 2014 and 2015 $ Revenues Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes Net income 700,000 $ (450,000) 250,000 (176,000) 74,000 (14,000) 60,000 (24,000) 36,000 $ 600,000 (375,000) 225,000 (165,000) 60,000 (10,000) 50,000 (20,000) 30,000 $ 2015 2014 $ 30,000 $ 110,000 100,000 25,000 90,000 80,000 195,000 240,000 250,000 (100,000) 50,000 200,000 440,000 $ 220,000 (65,000) 50,000 205,000 400,000 $ Assets Current Assets: Cash Accounts receivable Inventories Total Current Assets Fixed Assets; Plant and equipment Less accumulated depreciation Land Total Fixed Assets Total Assets Liabilities and Equity Current Liabilities: Accounts payable Notes payable-due within one year Accrued liabilities Total Current Liabilities Long Term Liabilities Total Liabilities Stockholders' Equity: Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equty $ 58,000 $ 50,000 50,000 50,000 108,000 32,000 140,000 100,000 20,000 120,000 100,000 200,000 300,000 440,000 $ 100,000 180,000 280,000 400,000 $ Industry Wide Income Statement Years Ended December 31, 2014 and 2015 $ Revenues Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes Net income 1,100,000 $ (700,000) 400,000 (275,000) 125,000 (15,000) 110,000 (44,000) 66,000 $ 1,000,000 (650,000) 350,000 (255,000) 95,000 (15,000) 80,000 (32,000) 48,000 $