Question
Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash$ 29,000$ 16,000$
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Jergan Corporation
Balance Sheets
December 31
2020 2019 2018
Cash$ 29,000$ 16,000$ 17,000
Accounts 49,000 44,000 47,000
receivables (net)
Other 89,000 4,000 63,000
current assets
Investment 54,000 69,000 44,000
Plant and 499,000 369,000 357,000
equipment
$720,000 $592,000 $528,000
Current $84,000 $79,000 $69,000
liabilities
Long-term 144,000 84,000 49,000
debt
Common stock, 15,000 309,000 295,000
$10 par
Retained 177,000 120,000 115,000
earnings
$720,000 $592,000 $528,000
Jergan Corporation
Income Statement
For the Years Ended December 31
2019 2020
sales $735,000 $605,000
revenue
Less: Sales 39,000 29,000
returns and allowances
Net sales 696,000 576,000
Cost of goods 426,000 365,000
sold
Gross profit 270,000 211,000
Operating 179,520 147,640
expenses
Net income $90,480$ 63,360
Additional information:
1.The market price of Jergan's 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%.)
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