Condensed balance sheet and income statement data for Jergan Corporation

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

Jergan Corporation Balance Sheets December 31 2022 2021 2020 $ 30,000 $ 20,000 45,000 Cash $ 18,000 48,000 64,000 Accoun


Additional information: 

1. The market price of Jergan’s common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively. 

2. You must compute dividends paid. All dividends were paid in cash. 


Instructions 

a. Compute the following ratios for 2021 and 2022. 

1. Profit margin. 

2. Gross profit rate. 

3. Asset turnover. 

4. Earnings per share. 

5. Price-earnings ratio. 

6. Payout ratio. 

7. Debt to assets ratio. 

b. Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2021 to 2022 of Jergan Corporation.