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. Where necessary, compute a simple average number of shares to approximate the weighted average number of shares. (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%.) 2019 2020 (1) Profit margin enter a percentage number rounded to 1 decimal place % enter a percentage number rounded to 1 decimal place % (2) Gross profit rate enter a percentage number rounded to 1 decimal place % enter a percentage number rounded to 1 decimal place % (3) Asset turnover enter a number rounded to 2 decimal places
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. Where necessary, compute a simple average number of shares to approximate the weighted average number of shares. (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%.) 2019 2020 (1) Profit margin enter a percentage number rounded to 1 decimal place % enter a percentage number rounded to 1 decimal place % (2) Gross profit rate enter a percentage number rounded to 1 decimal place % enter a percentage number rounded to 1 decimal place % (3) Asset turnover enter a number rounded to 2 decimal places
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
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Question
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. Where necessary, compute a simple average number of shares to approximate the weighted average number of shares. (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%.)
2019
|
2020
|
|||||||
---|---|---|---|---|---|---|---|---|
(1) | Profit margin | enter a percentage number rounded to 1 decimal place | % | enter a percentage number rounded to 1 decimal place | % | |||
(2) | Gross profit rate | enter a percentage number rounded to 1 decimal place | % | enter a percentage number rounded to 1 decimal place | % | |||
(3) | Asset turnover | enter a number rounded to 2 decimal places | times | enter a number rounded to 2 decimal places | times | |||
(4) | Earnings per share | $enter a dollar amount rounded to 2 decimal places | $enter a dollar amount rounded to 2 decimal places | |||||
(5) | Price-earnings ratio | enter a number rounded to 1 decimal place | times | enter a number rounded to 1 decimal place | times | |||
(6) | Payout ratio | enter a percentage number rounded to 0 decimal places | % | enter a percentage number rounded to 0 decimal places | % | |||
(7) | Debt to assets ratio | enter a percentage number rounded to 0 decimal places | % | enter a percentage number rounded to 0 decimal places | % |
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