Question
Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 29,300
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Jergan Corporation Balance Sheets December 31 | |||||||||
---|---|---|---|---|---|---|---|---|---|
2020 | 2019 | 2018 | |||||||
Cash | $ 29,300 | $ 17,300 | $ 17,000 | ||||||
Accounts receivable (net) | 49,900 | 44,100 | 47,800 | ||||||
Other current assets | 90,900 | 96,000 | 63,900 | ||||||
Investments | 55,200 | 70,200 | 45,600 | ||||||
Plant and equipment (net) | 500,700 | 370,600 | 358,000 | ||||||
$726,000 | $598,200 | $532,300 | |||||||
Current liabilities | $84,800 | $79,100 | $70,300 | ||||||
Long-term debt | 145,700 | 85,900 | 50,800 | ||||||
Common stock, $10 par | 348,000 | 320,000 | 312,000 | ||||||
Retained earnings | 147,500 | 113,200 | 99,200 | ||||||
$726,000 | $598,200 | $532,300 |
Jergan Corporation Income Statement For the Years Ended December 31 | ||||||
---|---|---|---|---|---|---|
2020 | 2019 | |||||
Sales revenue | $743,000 | $606,900 | ||||
Less: Sales returns and allowances | 40,000 | 29,500 | ||||
Net sales | 703,000 | 577,400 | ||||
Cost of goods sold | 427,400 | 371,500 | ||||
Gross profit | 275,600 | 205,900 | ||||
Operating expenses (including income taxes) | 184,210 | 148,160 | ||||
Net income | $ 91,390 | $ 57,740 |
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 | enter your answer rounded to 1 decimal place | % | enter your answer rounded to 1 decimal place | % | |||
(2) | Gross profit rate | enter your answer rounded to 1 decimal place | % | enter your answer rounded to 1 decimal place | % | |||
(3) | Asset turnover | enter your answer rounded to 2 decimal places | times | enter your answer rounded to 2 decimal places | times | |||
(4) | Earnings per share | $enter your answer rounded to 2 decimal places | $enter your answer rounded to 2 decimal places | |||||
(5) | Price-earnings ratio | enter your answer rounded to 1 decimal place | times | enter your answer rounded to 1 decimal place | times | |||
(6) | Payout ratio | enter your answer rounded to 0 decimal places | % | enter your answer rounded to 0 decimal places | % | |||
(7) | Debt to assets ratio | enter your answer rounded to 0 decimal places | % | enter your answer rounded to 0 decimal places | % |
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