Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Im having trouble with the rounding portion and am not sure what I am doing wrong Problem 18-03A a Your answer is partially correct. Try

Im having trouble with the rounding portion and am not sure what I am doing wrong image text in transcribed
image text in transcribed
image text in transcribed
Problem 18-03A a Your answer is partially correct. Try again. Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 Cash $ 30,000 $ 20,000 Accounts receivable (net) 50,000 45,000 Other current assets 90,000 95,000 Investments 55,000 70,000 Plant and equipment (net) 500,000 370,000 $725,000 $600,000 Current liabilities $85,000 $80,000 Long-term debt 145,000 85,000 Common stock, $10 par 320,000 310,000 Retained earnings 175,000 125,000 $725,000 $600,000 2018 $ 18,000 48,000 64,000 45,000 358,000 $533,000 $70,000 50,000 300,000 113,000 $533,000 Jergan Corporation Income Statement For the Years Ended December 31 2020 $740,000 2019 Sales revenue $600,000 Common stock, $10 par Retained earnings 1320,000 175,000 $725,000 310,000 125,000 $600,000 300,000 113,000 $533,000 2019 Jergan Corporation Income Statement For the Years Ended December 31 2020 Sales revenue $740,000 Less: Sales returns and allowances 40,000 Net sales 700,000 Cost of goods sold 425,000 Gross profit 275,000 Operating expenses (including income taxes) 180,000 Net income $ 95,000 $600,000 30,000 570,000 350,000 220,000 150,000 $ 70,000 Additional information: 1. The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, 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 2019 2020 (1) Profit margin 11.8 % Sy Policy. 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Ins. Compute the design o n 2020 and (1) maryn (2) Gres porte (3) A rne (4) Caminge par met

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

Ethical Obligations And Decision Making In Accounting Text And Cases

Authors: Steven Mintz, Roselyn Morris

2nd Edition

0078025281, 9780078025280

More Books

Students also viewed these Accounting questions