Question
Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 29,700
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 | $ 17,300 | $ 17,100 | ||||||
Accounts receivable (net) | 49,500 | 45,800 | 49,000 | ||||||
Other current assets | 89,800 | 95,700 | 63,900 | ||||||
Investments | 55,100 | 69,300 | 45,600 | ||||||
Plant and equipment (net) | 500,800 | 369,900 | 358,000 | ||||||
$724,900 | $598,000 | $533,600 | |||||||
Current liabilities | $84,500 | $80,200 | $69,100 | ||||||
Long-term debt | 145,100 | 84,100 | 49,100 | ||||||
Common stock, $10 par | 354,000 | 321,000 | 308,000 | ||||||
Retained earnings | 141,300 | 112,700 | 107,400 | ||||||
$724,900 | $598,000 | $533,600 |
Jergan Corporation Income Statement For the Years Ended December 31 | ||||||
---|---|---|---|---|---|---|
2020 | 2019 | |||||
Sales revenue | $744,500 | $606,300 | ||||
Less: Sales returns and allowances | 40,900 | 29,700 | ||||
Net sales | 703,600 | 576,600 | ||||
Cost of goods sold | 426,600 | 369,000 | ||||
Gross profit | 277,000 | 207,600 | ||||
Operating expenses (including income taxes) | 178,496 | 155,706 | ||||
Net income | $ 98,504 | $ 51,894 |
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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