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Please follow the template and help with correct answers Please help with additional question on the bottom as well. Thank you P13.3APeriorin ratio analysis, and
Please follow the template and help with correct answers
Please help with additional question on the bottom as well. Thank you
P13.3APeriorin ratio analysis, and discuss change in nnancia Condensed balance sheet and income statement data for Jergan Corporation are presented here JERGAN CORPORATION Balance Sheet December 31 Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) 2012 30,000 50,000 90,000 55,000 500.000- 2016 $20,000 45,000 95,000 70,000 370,000 S600,000 2015 $18,000 48,000 64,000 45,000 _TSS 33,000 80,000$70.000 50,000 Current liabilities Long-term debt Common stock, $10 par Retained Earnings $85.000 145,000 320,000 175,000 $725,000 85,000 310,000 125,000 $600,000 300,000 113 S533,000 JERGAN CORPORATION Income Statement For the Year Ended December 31 2017 2016 740,000$600,000 Sales revenue Less: Sales return and allowances Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) Net income 40,000 700,000 425,000 275,000 180,000 95,000 0,000 570,000 350,000 220,000 150 70,000 Additional information The market price ofJergan's common stock was $7.00, $7.50, and $8.50 for 2012 2016, and 2017, respectively 2. You must compute dividends paid. All dividends were paid in cash. Instructions Compute the following ratios for 2016 and 2017 (1) Profit margin. (2) Giross profit rate. (3) Asset tumover (4) Eamings per share Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2016 to 2017 of Jergan Corporation (a) 5. Price-camings ratio. 6. Payout ratio. 7. Debt to assets ratio. (b) NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with aStep by Step Solution
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