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Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 29,700
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Jergan Corporation Balance Sheets December 31 | |||||||||
2020 | 2019 | 2018 | |||||||
Cash | $ 29,700 | $ 17,100 | $ 17,600 | ||||||
Accounts receivable (net) | 49,000 | 45,900 | 47,800 | ||||||
Other current assets | 90,300 | 94,300 | 63,400 | ||||||
Investments | 55,600 | 69,600 | 45,100 | ||||||
Plant and equipment (net) | 500,800 | 370,400 | 357,600 | ||||||
$725,400 | $597,300 | $531,500 | |||||||
Current liabilities | $85,900 | $80,700 | $70,100 | ||||||
Long-term debt | 145,800 | 84,800 | 49,500 | ||||||
Common stock, $10 par | 348,000 | 313,000 | 309,000 | ||||||
Retained earnings | 145,700 | 118,800 | 102,900 | ||||||
$725,400 | $597,300 | $531,500 |
Jergan Corporation Income Statement For the Years Ended December 31 | ||||||
2020 | 2019 | |||||
Sales revenue | $742,500 | $606,300 | ||||
Less: Sales returns and allowances | 39,500 | 30,500 | ||||
Net sales | 703,000 | 575,800 | ||||
Cost of goods sold | 425,800 | 367,000 | ||||
Gross profit | 277,200 | 208,800 | ||||
Operating expenses (including income taxes) | 192,840 | 145,462 | ||||
Net income | $ 84,360 | $ 63,338 |
Additional information:
1. | The market price of Jergans 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. |
(a) Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
2019 | 2020 | |||||||
(1) | Profit margin | % | % | |||||
(2) | Gross profit rate | % | % | |||||
(3) | Asset turnover | times | times | |||||
(4) | Earnings per share | $ | $ | |||||
(5) | Price-earnings ratio | times | times | |||||
(6) | Payout ratio | % | % | |||||
(7) | Debt to assets ratio | % | % |
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