Condensed balance sheet and income statement data for Jergan Corporation are presented here.Jergan CorporationBalance SheetsDecember 31 2020 2019 2018Cash $ 29,600 $ 17,000 $ 17,600 Accounts receivable (net) 50,600 44,300 48,300 Other current assets 90,300 94,500 64,500 Investments 55,000 70,000 44,700 Plant and equipment (net) 500,400 370,600 357,400 $ 725,900 $ 596,400 $ 532,500 Current liabilities $ 85,400 $ 79,800 $ 69,900 Long-term debt 144,900 84,300 50,900 Common stock, $10 par 351,000 310,000 300,000 Retained earnings 144,600 122,300 111,700 $ 725,900 $ 596,400 $ 532,500 Jergan CorporationIncome StatementFor the Years Ended December 31 2020 2019Sales revenue $ 737,000 $ 605,800 Less: Sales returns and allowances 39,700 30,300 Net sales 697,300 575,500 Cost of goods sold 425,500 370,000 Gross profit 271,800 205,500 Operating expenses (including income taxes) 188,124 147,950 Net income $ 83,676 $ 57,550 Additional information:1. The market price of Jergan’s common stock was $ 7.00, $ 7.50, and $ 8.50 for 2018, 2019, and 2020, respectively.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 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) (a)Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payoutratio and debt to assets ratio to O decimal places, e.g. 18%. Round all other answers to 1 decimal place, eg. 6.8 or 6.8%.)20192020(1)Profit margin%%(2)Gross profit rate(3)Asset turnovertimestimes(4)Earnings per share$$(5)Price-earnings ratiotimestimes(6)Payout ratio%(7)Debt to assets ratio%%24

Name: Condensed balance sheet and income statement data for Jergan Corporati
Uploaded: 2022-11-22T13:58:24.000Z
Channel: Bartleby
Description: Condensed balance sheet and income statement data for Jergan Corporation are presented here.Jergan CorporationBalance SheetsDecember 31 2020 2019 2018Cash $ 29,600 $ 17,000 $ 17,600 Accounts receivable (net) 50,600 44,300 48,300 Other current

Profit Margin =Net Income/Net Sales Gross Profit Rate = Gross Profit/Net Sales Asset Turnover =Net…

Answered: Compute the following ratios for 2019…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Practice Pack

Condensed balance sheet and income statement data for Jergan Corporation are presented here.

Jergan Corporation Balance Sheets December 31
	2020	2019		2018
Cash	$ 29,600		$ 17,000		$ 17,600
Accounts receivable (net)	50,600		44,300		48,300
Other current assets	90,300		94,500		64,500
Investments	55,000		70,000		44,700
Plant and equipment (net)	500,400		370,600		357,400
	$ 725,900		$ 596,400		$ 532,500
Current liabilities	$ 85,400		$ 79,800		$ 69,900
Long-term debt	144,900		84,300		50,900
Common stock, $10 par	351,000		310,000		300,000
Retained earnings	144,600		122,300		111,700
	$ 725,900		$ 596,400		$ 532,500

Jergan Corporation Income Statement For the Years Ended December 31
	2020	2019
Sales revenue	$ 737,000		$ 605,800
Less: Sales returns and allowances	39,700		30,300
Net sales	697,300		575,500
Cost of goods sold	425,500		370,000
Gross profit	271,800		205,500
Operating expenses (including income taxes)	188,124		147,950
Net income	$ 83,676		$ 57,550

Additional information:

1.		The market price of Jergan’s common stock was $ 7.00, $ 7.50, and $ 8.50 for 2018, 2019, and 2020, respectively.
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 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)