Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 30,800 $ 17,600 $ 18,700 Accounts receivable (net) 50,500 44,200 47,100 Other current assets 89,600 94,900 63,900 Investments 55,300 71,000 45,100 Plant and equipment (net) 500,500 370,000 358,500 $726,700 $597,700 $533,300 Current liabilities $85,500 $79,800 $69,400 Long-term debt 144,300 84,100 50,300 Common stock, $10 par 348,000 316,000 304,000 Retained earnings 148,900 117,800 109,600 $726,700 $597,700 $533,300 Jergan Corporation Income Statement For the Years Ended December 31 2020 2019 Sales revenue $738,000 $605,500 Less: Sales returns and allowances 39,100 29,900 Net sales 698,900 575,600 Cost of goods sold 425,600 367,000 Gross profit 273,300 208,600 Operating expenses (including income taxes) 182,443 151,040 Net income $ 90,857 $ 57,560 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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8EA: Using the following select financial statement information from Black Water Industries, compute the...

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

Jergan Corporation Balance Sheets December 31
	2020	2019		2018
Cash	$ 30,800		$ 17,600		$ 18,700
Accounts receivable (net)	50,500		44,200		47,100
Other current assets	89,600		94,900		63,900
Investments	55,300		71,000		45,100
Plant and equipment (net)	500,500		370,000		358,500
	$726,700		$597,700		$533,300
Current liabilities	$85,500		$79,800		$69,400
Long-term debt	144,300		84,100		50,300
Common stock, $10 par	348,000		316,000		304,000
Retained earnings	148,900		117,800		109,600
	$726,700		$597,700		$533,300

Jergan Corporation Income Statement For the Years Ended December 31
	2020	2019
Sales revenue	$738,000		$605,500
Less: Sales returns and allowances	39,100		29,900
Net sales	698,900		575,600
Cost of goods sold	425,600		367,000
Gross profit	273,300		208,600
Operating expenses (including income taxes)	182,443		151,040
Net income	$ 90,857		$ 57,560

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.

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%.)
2019
2020
(1)
Profit margin
%
(2)
Gross profit rate
%
(3)
Asset turnover
times
times
(4)
Earnings per share
(5)
Price-earnings ratio
times
times
(6)
Payout ratio
%
(7)
Debt to assets ratio
%
%
%24
%24

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