Financial statements for Jordan Company follow JORDAN COMPANY Balance Sheets As of December 31 2019 2018 Assets Current assets 20,500 20,900 50,000 135,000 29,000 255,400 27,000 270,000 27,000 $579,400 16,500 6,900 42,000 143,000 14,000 222,400 20,000 255,000 22,000 $519,400 Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current abiities Notes payable Accounts payable Salaries payable 27,200 58,800 24,000 110,000 10,800 45,000 18,000 73,800 Total current liabilities Noncurrent liabilities Bonds payable Other 130,000 33.000 130,000 28.000 163,000158000 231,800 Total noncurrent liabilities Total liabilities 273,000 stockholders' equity Preferred stock, (par value $10, 5% cumulative, non-participating; 9,000 shares authorized and issued) Common stock (no par 50,000 shares authorized; 10,000 shares issued) Retained earnings 90,000 90,000 126,400 306,400 $579,400 90,000 90,000 107,600 287,600 $519,400 Total stockholders' equity Total liabilities and stockholders' equity JORDAN COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2019 2018 Revenues Sales (net) Other revenues $320,000 300,000 9,8006,800 306,800 Total revenues 329,800 Expenses 160,000 64,000 10,700 68,000 302,700 27,100 107,600 4,500 3,800 $126,400 130,000 59,000 9,900 67,000 265,900 40,900 75,000 4,500 3,800 $107,600 Cost of goods sold Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 Required Calculate the following ratios for 2019 and 2018. Since 2017 numbers are not presented, do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 balance sheet. a. Working capital b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, 2018, were $43,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, 2018, was $149,000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt to assets ratio. (Round your answers to the nearest whole percent.) i. Debt to equity ratio. (Round your answers to 2 decimal places.) j. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets. (Round your answers to 2 decimal places.) n. Return on investment. (Round your answers to 2 decimal places.) o. Return on equity. (Round your answers to 2 decimal places.) p. Earnings per share. (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: 2018, $12.20; 2019, $13.40) (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) 2019 2018 $469,400 $445,600 a. Working capital b. Current ratio c. Quick ratio d. Receivables turnover e. Average days to collect accounts receivable f. Inventory turnover g. Average days to sell inventor h. Debt to assets ratio i. Debt to equity ratio j. Number of times interest earned k. Plant assets to long-term debt l. Net margin m. Asset turnover n. Return on investment o. Return on equity p. Earnings per share q. Book value per share r. Price-earnings ratio s. Dividend yield 5.26 7.04 times days times days imes days imes days times imes per share per share per share per share
