Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 29,200

image text in transcribedimage text in transcribedimage text in transcribed

Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 29,200 $16,100 $ 18,100 Accounts receivable (net) 50,400 45,600 48,100 Other current assets 90,700 94,900 63,200 Investments 54,700 70,400 45,100 Plant and equipment (net) 499,800 $724,800 370,600 $597,600 358,700 $533,200 $69,600 50,500 Current liabilities $84,900 $80,800 Long-term debt 145,100 85,700 Common stock, $10 par Retained earnings 315,000 179,800 $724,800 319,000 112,100 $597,600 301,000 112,100 $533,200 Jergan Corporation Income Statement For the Years Ended December 31 2020 2019 Sales revenue $741,000 $606,200 Less: Sales returns and allowances 40,900 29,600 Net sales 700,100 576,600 Cost of goods sold 426,600 374,500 Gross profit 273,500 202,100 Operating expenses (including income taxes) 182,487 144,440 Net income $ 91,013 $57,660 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. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management And Cost Accounting

Authors: Charles T. Horngren (Author), Alnoor Bhimani (Author), Srikant M. Datar (Author), George Foster

2nd Edition

0273651838, 978-0273651833

More Books

Students also viewed these Accounting questions

Question

=+a) Was this an observational study or an experiment?

Answered: 1 week ago