Problem 14-3A a
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Jergan Corporation |
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2020 |
2019 |
2018 |
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Cash | $ 30,500 | $ 17,800 | $ 17,700 | ||||||
Accounts receivable (net) | 50,400 | 45,200 | 48,800 | ||||||
Other current assets | 89,300 | 96,000 | 65,000 | ||||||
Investments | 55,400 | 70,000 | 45,800 | ||||||
Plant and equipment (net) | 499,100 | 369,200 | 358,400 | ||||||
$724,700 | $598,200 | $535,700 | |||||||
Current liabilities | $85,200 | $79,300 | $70,600 | ||||||
Long-term debt | 145,300 | 84,500 | 50,700 | ||||||
Common stock, $10 par | 330,000 | 316,000 | 310,000 | ||||||
Retained earnings | 164,200 | 118,400 | 104,400 | ||||||
$724,700 | $598,200 | $535,700 |
Jergan Corporation |
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2020 |
2019 |
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Sales revenue | $736,500 | $606,500 | ||||
Less: Sales returns and allowances | 39,400 | 29,300 | ||||
Net sales | 697,100 | 577,200 | ||||
Cost of goods sold | 427,200 | 373,000 | ||||
Gross profit | 269,900 | 204,200 | ||||
Operating expenses (including income taxes) | 179,277 | 152,252 | ||||
Net income | $ 90,623 | $ 51,948 |
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%.)
(6) | Payout ratio | % | % | |||||
(7) | Debt to assets ratio | % | % |
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