Question
Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 30,400
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Jergan Corporation Balance Sheets December 31 | |||||||||
2020 | 2019 | 2018 | |||||||
Cash | $ 30,400 | $ 16,000 | $ 17,700 | ||||||
Accounts receivable (net) | 50,500 | 45,600 | 47,200 | ||||||
Other current assets | 89,000 | 95,200 | 64,100 | ||||||
Investments | 55,800 | 69,700 | 45,000 | ||||||
Plant and equipment (net) | 499,000 | 369,400 | 357,600 | ||||||
$724,700 | $595,900 | $531,600 | |||||||
Current liabilities | $85,100 | $80,600 | $70,600 | ||||||
Long-term debt | 145,000 | 85,100 | 49,600 | ||||||
Common stock, $10 par | 318,000 | 313,000 | 297,000 | ||||||
Retained earnings | 176,600 | 117,200 | 114,400 | ||||||
$724,700 | $595,900 | $531,600 |
Jergan Corporation Income Statement For the Years Ended December 31 | ||||||
2020 | 2019 | |||||
Sales revenue | $740,500 | $605,300 | ||||
Less: Sales returns and allowances | 39,900 | 29,500 | ||||
Net sales | 700,600 | 575,800 | ||||
Cost of goods sold | 425,800 | 373,500 | ||||
Gross profit | 274,800 | 202,300 | ||||
Operating expenses (including income taxes) | 183,722 | 144,720 | ||||
Net income | $ 91,078 | $ 57,580 |
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.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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