E13-4 Prepare vertical analysis Operating data for Joshua Corporation are presented below. 2019 2018 Sales revenue $800,000 $600,000 Cost of goods sold 520,000 408,000 Selling expenses 120,000 72,000 Administrative exper 60,000 48,000 Income tax expense 30,000 24,000 Net income 70,000 48,000 Instructions Prepare a schedule showing a vertical analysis for 2019 and 2018. NOTE: Enter a number in cells requesting a value; enter either a nur JOSHUA CORPORATION Condensed Income Statement For the Years Ended December 31 2019 2018 Amount Percent Amount Percent Sales Revenue Value ? Value ? Cost of goods sold Value ? Value ? Gross profit ? ? ? ? Selling expenses Value ? Value ? Administrative experValue ? Value ? Total operating expe ? ? ? ? Income before incon ? ? ? ? Income tax expense Value ? Value ? Net income ? ? ? ? P13-3A Perform ratio analysis, and discuss change in financial position Condensed balance sheet and income statement data for Jergan Corpo JERGAN CORPORATION Balance Sheet December 31 2019 2018 2017 Cash $30,000 $20,000 $18,000 Accounts re 50,000 45,000 48,000 Other curre 90,000 95,000 64,000 Investment 55,000 70,000 45,000 Plant and et 500,000 370,000 358,000 $725,000 $600,000 $533,000 Current liab $85,000 $80,000 $70,000 Long-term 145,000 85,000 50,000 Common st 320,000 310,000 300,000 Retained Ea 175,000 125,000 113,000 $725,000 $600,000 $533,000 JERGAN CORPORATION Income Statement For the Year Ended December 31 2019 2018 Sales revenue $740,000 $600,000 Less: Sales return and allowan 40,000 30,000 Net sales 700,000 570,000 Cost of goods sold 425,000 350,000 Gross profit 275,000 220,000 Operating expenses (including 180,000 150,000 Net income 95,000 70,000 Additional information: 1. The market price of Jergan's common stock was $7.00, $7.50, ar 2018, and 2019, respectively. You must compute dividends paid. All dividends were paid in ca Instructions (a) Compute the following ratios for 2018 and 2019. (1) Profit m 5. Price-earnings ratio. (2) Gross p16. Payout ratio. (3) Asset tu 7. Debt to assets ratio. (4) Earnings per share. (b) Based on the ratios calculated, discuss briefly the improvement financial position and operating results from 2018 to 2019 of Je NOTE: Enter a number in cells requesting a value; enter either a num (a)(1) Profit margin 2019 2018 Net income! Value Value Net sales Value Value Profit marel ? 2. 2018 Value Value ? 2018 Value Value ? 2018 Value Value ? 2018 (a)(2) Gross profit rate 2019 Gross profiel Value Net sales Value Gross profil (a)(3) Asset turnover 2019 Total assets Value Total asset Value Total assets, 2017 ? Average to 2019 Net sales Value Average to Value Asset turno (a)(4) Earnings per share 2019 Commonsi Value Commons Value Common shares outstanding, Average coll 2019 Net incomel Value Average coll Value Earnings pe (a)(5) Price earnings ratio 2019 Stock price Value Earnings pe! Value Price-earnir (a)(6) Payout ratio 2019 Prior year's Value Plus: currer! Value Less: currer Value Cash divide! ? 2019 Cash dividel Value Net income Value Payout ratid (a)(7) Debt to assets ratio 2019 Current Lial Value Long-term Value Total liabilis Total assets! Value Debt to ass Value Value ? 2018 Value Value ? 7 2018 Value Value ? ? 2018 Value Value Value ? 2018 Value Value ? ? 2018 Value Value ? Value
