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The following financial statements for Jordan Corporation should be used to calculate the following ratios. Jordan Corporation Balance Sheets December 31, 2016 and 2015 Assets

The following financial statements for Jordan Corporation should be used to calculate the following ratios.

Jordan Corporation

Balance Sheets

December 31, 2016 and 2015

Assets

Current Assets:

Cash

$ 250,000

$ 275,000

Accounts Receivable

400,000

450,000

Inventory

600,000

500,000

Prepaid Expenses

25,000

30,000

Total Current Assets

1,275,000

1,255,000

Property, Plant and Equipment:

Equipment

1,000,000

900,000

Less Accumulated Depreciation

(200,000)

(175,000)

Total Property, Plant and Equipment

800,000

725,000

Total Assets

$ 2,075,000

$ 1,980,000

Liabilities and Stockholders' Equity

Current Liabilities:

Accounts Payable

$ 430,000

$ 400,000

Notes Payable

100,000

80,000

Wages Payable

30,000

20,000

Total Current Liabilities

560,000

500,000

Long Term Liabilities:

Notes Payable

200,000

180,000

Bonds Payable

150,000

200,000

Total Long Term Liabilities

350,000

380,000

Total Liabilities

910,000

880,000

Stockholders' Equity

Common Stock

500,000

500,000

Additional Paid in Capital

100,000

100,000

Retained Earnings

565,000

500,000

Total Stockholders' Equity

1,165,000

1,100,000

Total Liabilities and Equity

$ 2,075,000

$ 1,980,000

Jordan Corporation

Income Statement

Years Ended December 31, 2016 and 2015

Sales

$ 3,500,000

$ 3,300,000

Cost of Goods Sold

1,200,000

1,150,000

Gross Profit

2,300,000

2,150,000

Operating Expenses

1,800,000

1,700,000

Operating Income

500,000

450,000

Interest Expense

25,000

30,000

Income Before Taxes

475,000

420,000

Income Taxes

100,000

80,000

Net Income

$ 375,000

$ 340,000

There are 100,000 shares outstanding at the end of both 2016 and 2015.

Market price per share on December 31, 2016 was $45.00 per share.

Company paid $100,000 in dividends during 2016.

Compute the following ratios:

Liquidity:

Working capital

Current ratio

Inventory turnover

Days in inventory

Accounts receivable turnover

Average collection period

Solvency:

Debt to assets ratio

Times interest earned

Profitability:

Earnings per share

Price earnings ratio

Gross profit ratio

Net profit margin ratio

Return on assets

Asset turnover

Dividend payout ratio

Return on common equity

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